As someone who has had to do a lot of live streaming to the internet via webcams/camera setups the FlipLive sounds amazing. If it was really as user friendly as the traditional Flip camera (which was a great product and I'm sorry to see go) it would have gained at the very least a sizable niche following, especially with the burgeoning lifestream movement. Its a pity that this is not going to be released, but theres a great startup opportunity here for anyone looking for one.
haha rereading my post I guess that would be my first thought too - I actually do some recording of events for my university. And its a real bitch trying to get the equipment functioning, a plug and play like option would be ideal