I think my use of flash indoors amounts to an aesthetic preference: I like the way skin tones come out on the combination of a ludicrous P&S flash and a "cheap" color stock like Gold 200. The tradeoff is glare and red-eye, both of which can be compensated for during compensation or with editing after the fact.
For built-flashes that can’t be aimed I usually hold a white sheet of paper just in front of it.
> modern smartphones are great in low light.
This is only true if you only view images on a smartphone. Blow them up on a 23 inch or larger monitor and you'll notice tons of digital NR, artifacting, and other fuckery where the image processing algorithms have tried to recover detail and not really done so all that well.
For example if you can make use of a bounce flash you can get a lovely soft fill light.
Light coming from very close to the axis of the lens as the dominant light source is going to make your scene look very flat.
It works well for a day light fill a few stops down but generally looks a bit crap as the only light.