Not that it's ugly, its just distracting from the code, also it takes up screen real estate. Just my 2 cents, if that's your style, go with it.
I avoid it mostly because it adds overhead to the file size. You can crunch down a screen / presentation only screencast to pretty incredible sizes with H264 but as soon as you mix in live video, you either need to sacrifice its quality severely or put up with large files.