The Flip's strength is it's simplicity. Sorry, but I don't buy the idea elsewhere on this thread that Camera phones (w/ video recording) or GoPro's have captured this market. Yes, they both cover some of it, but lets face it we're the geeks - we're likely to spend money on the latest gadget.

The use case I want to suggest is my parents (in their early 60's). They both have cell phones, but they are not smartphones (they're as likely to get an iphone/android device as they are to go base jumping). They got a Flip about 2 years ago and have recorded over 1,000 hours of their grandkids (my kids) on it so far! It's easy to keep in a pocket or a bag, there's an on/off switch and a big red button to record, and of course it easily plugs in to their laptop (mom) / PC (dad). It had made a massive difference to them, and I think they're more likely to record stuff on the Flip than to take a picture of it :-)

Sad to see the Flip go.