For the money and convenience, I don't think the Flip cameras can be beat. I liken it somewhat to a iphone camera compared to a digital SLR: the full blown version is infinitely more capable, but a lot of times you reach for the more limited solution because it's so convenient. Capturing and sharing video images is VERY easy with Flip.
HOWEVER, as a three time progressive Flip owner (original --> Mino --> Mino HD), as the resolution on the cameras improves, shot steadiness/shake is increasingly notable. You really have to pay attention to get quality shots. It really is more of a casual camera. IMHO, it's great for capturing kids and to have a video record of activities (capture a wakeboard trick), but not well suited for shooting the next high-def feature film.