TL;DR unless you intend to get pretty into it and just want something for festivals and something to give to non-radio-geek friends to use, just get a FRS or GMRS radio. Motorola and Uniden both make quality sets that will work up to a few miles away at festivals.
Unfortunately all the unlicensed bands require band-specific hardware certification, which the Baofeng's don't qualify for, for various reasons.
Also, the Baofeng's aren't software-defined radios. Those cost much more money. :) It's just a standard programmable VHF/UHF radio, that happens to be very cheap.
Many commercial two-way radios support both GMRS (up to 5 watts - $65 for 5-year license) and FRS (up to 500 milliwatts - no license req'd). Most users just ignore the GMRS functionality on their 2-ways.
http://www.amazon.com/gp/product/B001UE6MIO/ref=pd_lpo_sbs_d...
Agreed, they're great.
Walkie Talkie is consumer and no license.
The commercial FRS/GMRS ones requires a $90 annual license.
Off the top of my head, any of these would work: Amateur radios that have D-STAR (connected to an Android phone), Garmin Rino, Motorola DTR, and TriSquare (discontinued, but you can find them on eBay).