I've used both the Flip and the Piscio. To be honest, everyone has their reasons why they prefer one over the other. Even me, depending on what mood I'm in when I write reviews of what I like/don't like about them, you'll think I contradict myself often.
The fact is, I like the Flip for some reasons (especially day time video), but really like the Picsio, especially for night videos, clarity, macro mode, etc. Depending on what you want out of the recorder, neither may be what you're looking for. Or if you have no specific objectives, I think you'd be fine with the picsio (just realize it's a video camera first, not a still photo camera).
I wasn't dissappointed with either. They both produce fine video. I'm sure after I upgrade to my $1,200 camera + $2,600 housing + $2,300 lights come Christmas time, I'll find something to complain about but that doesn't mean I wont' be taking superb video. These "entry level" sub $300 HD cameras do just fine and are getting better with each new market offering.