Really? We're surprised by this? Camera phones with video recording capabilities are almost ubiquitous. More then that, they're cheaper and solve the primary usage case better then the portable Flip cameras do. Flip cameras provided better quality portable video and now that embedded mobile technology has caught up to that quality, justifying the price to carry around another device is difficult.
I got a Flip camera phone 3 or 4 years back for Christmas. Great impulse buy. I think there was only 1 model. Less than $100. Didn't use it that much but still loved it. Girlfriend, too. Great for trips.
Loved it so much that when it crapped out, we decided to get a new one this year, even though we both have good smartphones. Now there were 2 or 3 models of Flip. None less than $150. I just wanted what I had before. Simple, cheap, works.
I think I got a discounted one on Amazon for a little under $150. Get it in the mail. Doesn't work out of the box. Neither Linux nor Windows computer recognizes it. Won't charge. After an hour on the phone with a woman in the Philippines, we finally got it charging. First time we try to use it, it just shuts down. It was on the next flight back to Amazon.
There was still a market for the old Flip: me. Cisco screwed the pooch on this.