Zen Camcorder has 13% of the market
nytimes.com
nytimes.com
My mom was showing me her Flip Video about three months ago. I'd never heard of it and she was like "what? You have to see it" She pulled out the unassuming little brick videocorder and with enthusiasm demonstrated it. It makes cute Tivo'esque sounds when you press a button. She is not very technically savvy yet she has used it to shoot video and share video (via USB copying, not YouTube) with friends and family (baby videos mostly). The video quality is decent and it fits in her purse (important). She has shipped at least one FlipVideo overseas.
edit : The sony model has some additional controls like (digital) zoom etc. So slightly more features than the Flip which can either be a "feature" or a "put-off" depending on your perspective.
He may be right though.