Correct me if I'm wrong but, it sounds to me that they wanted to have a preview sketch of the website. So my question to you is, are you designing the website or just coding it? Because if you are just coding it then it all has to do with your knowledge of coding. If you can open up a notepad and make a very well coded website like CrazeD up there then go for it. But if you are looking for a more visual approach to coding then go with DW.
If you are in charge of designing the website as well, then you shouldn't even be thinking about coding yet if the company just wants to see the preview. Draw out a rough sketch on a piece of paper and go to PS and make the design of the website. Most companies enjoy seeing the "rough draft" if you will, before the website is operational.