Eclipse does the job just fine for me with the Erlang plugin. If you are already familiar with that through Java development why not simply stick with that?
I have also used JEdit and it performs pretty well.
Both are pretty good at syntax highlighting and have templates for new modules (OTP etc.).
Although I agree that Emacs is the "official" editor of choice you don't have to use it (and learn a whole new editing approach) if you don't want to.
