I've got a pair of Flips that I use for work - I do some stuff with work practices and ergonomics, and they're very convenient for snapping quick clips of people on the job. Just plug it in and go - then I can embed the clips in a training deck.
They're not fancy by any stretch of the imagination, but for the casual user who wants to shoot a quick video and e-mail it around or stick it on YouTube, it's about as simple as you can get. They're also handy because I'm often handing one to a blue-collar guy who might not be tech savvy. It's so simple I don't even need to tell them how to use it.
The fact that they take AA batteries is a plus too - battery life is good, and it's one less proprietary charger I've got to stick in my bag. The AV cable it uses will also work with a 5G iPod, so there's a nice synergy there in my gadget bag, too.