After reading this story about the tragic death of the flip, it suddenly hit me. The Flip wasn't killed because it wasn't profitbale, or popular, or even fit in with its owner's future plans.
CISCO is well known to service Billions of dollars in government contracts, they are the company that is building "The Human Network', one that will track every aspect of everyday life, from taking your meds to how many miles you drove last month. CISCO is networking all human activity.
Looking at the uprising of the 'Arab Spring', which is 'documented' with smartphones that are trackable, the last thing your government wants is non-trackable video devices.
Just like Raytheon, Haliburton or any other large supplier to the Military Industrial Complex, they are the government and must act accordingly. We can't allow dangerous devices like the flip video camera be used anonymously.
In fact, I'll go so far as to say the Flip was too sucessful. Your government is taking away your favourite toy because they actually want you to be posting geo-encoded media from devices that not only can be, but are being tracked in real time with one-stop shopping help from your friendly cellphone service provider.