I've owned one of these for 3 years, back before they become Flip and were just called "pure digital."
These things are great for the price. We can throw it in our pocket and shoot scrapbook quality video in seconds. The device itself has never given us any problems in 3 years, its been dropped, survived trips around the world, etc.
No, the quality isnt the same as a full-fledged camcorder, but for family memories, or just plain fun, its just dandy.