OK, I finally came around and bought a Flip video camera after getting to play around with one for a couple of days during a trip to DC. So far, I like it a lot.
It's insanely easy to use, quick to start up, and small. Three good features that pretty much ensure that it will always be in a bag or pocket, ready to go. In addition, although I've never been much of a video person, the Flip is different, it's like taking talking pictures, or stills, with context. Maybe it's the form-factor, but I find it easy to take the Flip out of my pocket and grab a quick 45 second shot of what we are doing. I never did that with the video camera. It's a picture-taking vs. a video taking mentality and it's good.
My only complaint is that is sucks in low-light situations, but we can't have everything, can we?