Today Cisco finally had to come to terms with the fact that it fundamentally misunderstands the consumer electronics market. Like, $590 million misunderstands it. That’s how much the company paid for Pure Digital originally. Now, Cisco will kill off the brand and let go of 550 employees in an attempt to restructure.

I can’t say I understand why Cisco bought the Flip in the first place. It’s like you can almost see the guys at Pure Digital biting their lips and trying not to laugh as Cisco drops a $590 million dollar offer on the table. I imagine there had to have been one guy in that meeting who would raise his hand every now and again to say “Hey, don’t you think this tech will be in every smartphone ever soon?” He was also probably getting kicked every time he got to, “Hey don’t you think…ow!”

One of the best features of iPhone 4 is that it records video in 720p. As with the iPhone 3GS, a lot of people have been asking whether that functionality will kill the Flip. I think the answer is still no, but it will eventually turn into a yes.

The problem is that the iPhone still isn’t prevalent enough. There are plenty of people in the world who are scared of smartphones – unsure that the additional cost of a data plan is actually worth it. For those people, the Flip is still a great option. It’s cheap, easy to use, and records great video.

As smartphones become more and more prevalent, though, its inevitable that the Flip will die off. As I’ve said plenty of times about the Kindle, I still believe purpose-built devices are a thing of the past. The Flip is no exception. The more advanced our daily handhelds become, the less we’ll need things like a Flip to fill the gap.

Flip MinoHD
Pure Digital was kind enough to send me a MinoHD as part of its custom screen-printed series this year and I love it. For such a small camcorder it takes fantastic, 720p video and the thing couldn’t be easier to use. Flip also introduced customizable skins to the mix this year, so you can gift a Flip with the image of your choice, or use their design/pattern generators to make this a little extra special.

You can get the MinoHD in either 60min (4GB) or 120min (8GB) storage sizes for $199.99 or $229.99 respectively. Customization does not cost extra, so get something funky unless you want that classic industrial design.

Also Consider: Flip UltraHD

Joby GorillaMobile
What’s a camcorder without a good tripod? No good at all, that’s what. Part of the problem with handheld camcorders is a lack of grippable parts for stability. Joby’s GorillaMobile can be bent around just about anything, including your wrist if you want to rig up a little wristmount system. Really, though, I like the GorillaMobile because it’s so small and versatile. It’s perfect for throwing in a bag to use at casual family functions and parties, keeping the 720p video on your new Flip nice and steady.

If you want something a little more substantial you could also consider the larger GorillaPod. Joby also makes a GorillaMobile specifically for the iPhone 3G/3GS and the GorillaTorch, a light sporting the same bendable legs. Check their official site for prices on each.

Also Consider: Vanguard VS41

Mophie Juice Pack Air
I tend to change my mind on iPhone cases all the time, but I always come back to the Mophie Juice Pack Air when I’m low on power. It minimally augments the size of the phone while providing an extra 60-80% battery life on the go. There are more powerful options out there, but they tend to be a little too bulky for my taste. Mophie’s Juice Pack, on the other hand, is a close fit without too many frills.

Mophie recently updated the line to include a soft-finish variety with the same power rating. It’s a nice addition, especially if you live in a humid climate like I do. You can get the Juice Pack Air in white, black, purple, or red for $79.95 from Mophie’s website.

Also Consider: Incase Power Slider 3G

Boa Nerve S/L
I tried to make a conscious effort to recommend a bag other than the Boa Nerve from Booq but I just couldn’t do it. I’m in love with this messenger and I’m sure you know someone who would be, too. The Nerve comes in small and large sizes to accommodate different sized laptops. There’s a removable laptop sleeve, which is perfect for a quick trip to the coffee shop, and plenty of pockets should you be headed for a full day of work. One of the best features is the stability strap, which pulls bag snug against your back if you have to run for a train or take the fixed-gear for a spin.

Booq was having trouble keeping these in stock, but they’re available now and ship within 24 hours. You can get the Boa Nerve for $129.95 at the Booq website.

Also Consider: Timbuk2 Commute Slim

Barnes & Noble Nook
I hesitate to recommend this because I’m generally averse to ereaders. There are those among you who like these things, and you all probably know someone who wants one, so I’ll go against my best instincts for the sake of your friends. The Nook is best of the ereaders I’ve seen. Since no one, not even the major sites, have had a chance to review these it’s tough to say how that little color screen will pan out, but it seems like a decent idea. You also get the ability to lend your ebooks to your friends and share your own media between your computer and your iPhone.

One BIG caveat for this one: The Nook is completely sold out for shipments arriving during 2009. The next flight will land January 4th, so you could always give the gift of the late present, which can be pretty cool. Barnes & Noble wants $259 for this one.

Also Consider: Amazon Kindle

AeroPress Coffee/Espresso Maker
Now that your loved ones will be spending all their hard-earned money on ebooks, they’ll need an inexpensive way to stay perky for those long reading sessions. The Aerobie AeroPress should be in every coffee lovers’ home, at least if they’re on a budget. It brews a decent cup of espresso and great Americano if you add a little water. Get a cheap frother and you can make your drink of choice in under two minutes and far cheaper than you’ll find at any cafe.

The press comes with a year’s supply of filters and everything you’ll need to make your perfect cuppa. The best part is the price, a mere $25.95 with free shipping from Amazon.

Also Consider: MyPressi TWIST

More good stuff to come in the Gadget Teaser 2009 Holiday Gift Guide tomorrow.

This here is the official low-down on all the changes to the iPod Nano for its 5th generation. Apple added a whole lot of functionality to what was once a simple, thin MP3 player and its (Apple) grooming the device to a run at the portable video camera market. With Flip in its sights, Apple hopes the Nano will be the world’s new favorite portable cam.

The body of the Nano 5G is pretty similar to the last model. The screen did get a bump from 2 inches to 2.2 inches, and the finish is a much shinier anodized aluminum. Oh yeah, there’s also that little camera on the back, but more on that later. The new Nano comes in two models, an 8GB and a 16GB, at $149 and $179, respectively.

Within the Nano’s slim and trim body, Apple added all sorts of goodies, the most notable of which is a video camera. It’s that itty bitty lens you see on the bottom-left of the device if you’re looking at the back. The camera is capable of shooting video at a 640×480 resolution, which are then stored as .mp4 files with h.264 video compression and AAC audio. Unfortunately, the cam doesn’t take still photos. The tech is definitely not something to write home about, and as much as Apple would like the addition of a camera to kill the Flip, I just don’t see it happening. The tech is just too far behind the Flip for the current price.

The other problem I see with the Nano is camera placement. I don’t know if Apple hired a bunch of lefty industrial designers, but someone should have changed this. Granted, it’s probably a space issue – the camera and the screen can’t coexist at the top of the device – but every right-handed person that touches one of these things will have the same complaint: my hand is always in the frame. There’s just no way around it. It’s the natural place for a righty to grab a device of that size.

The camera brings us to the next addition: the microphone. Again, awesome to be able to record video with audio on such a tiny device. Again, terrible mic placement. The ability to record voice memos is great, but gets quickly diminished by the sound of my index finger rubbing over the mic as I talk. The bottom of the device is the natural place to put your hand – hell, that’s where the controls are – so why put the mic right where my hand will always be? Stupid.

Among the smarter things Apple did in the update was add a radio. Yes, there’s an iPod with an FM tuner. Crazy, no? The tuner does require a headset to work, but it works well and has some cool features. The radio app retrieves RDS info, allows you to pause and rewind, and you can even tag songs. Plugging the Nano into your computer will take you to the iTunes location for songs you’ve tagged.

Last and certainly least, Apple added a pedometer to the Nano. I don’t know if they’re marketing this at soccer moms or the early 90’s, but it seems like a pretty weak addition. In fact, the whole thing operates like a lite version of the Nike+ campaign, which itself strikes me as incredibly lame.

To wrap it all up, I’m unimpressed. This update is a completely underwhelming attempt to take market away from Pure Digital and the Flip, and I think consumers are going to notice. The camera is bad enough that Apple doesn’t even want you to see the pictures it captures. The video isn’t a whole lot better, and the rest of the features have been on other MP3 players for years. I guess this is what happens when you’re on top and no one else is even close. You get complacent. Really, really complacent.