I have to agree with you that the notifier doesn't do such a good job of alerting you to sync problems. Since the Windows Explorer extension that appears attached to Mesh folder Explorer views is so annoying, I tend to shrink it down and don't notice that there is a conflict. If I don't open the folder I may not be aware of any issues either.
I am sure that others agree with us, so have a look at this post regarding suggestions on Connect:
Live Mesh Beta: Suggestions - Go cast your vote!
-steve
Microsoft MVP Windows Live / Windows Live OneCare & Live Mesh Forum Moderator