I got one at Frys Electronics in Sunnyvale too (thanks to asdalton for that initial tip that it was there). It is now sitting in my car in the pocket of the driver's side door as an emergency light. No, it is not the best in terms of output but I think there are a few things going for it:
1.) Price - For a made in USA light with multi-mode output, I think the price of ~$25 (same as the original mini Maglite LED) is a bargain.
2.) Durability - I have no doubt that the MagLed can survive rough use and keep on working.
3.) Accessories - A mini Maglite has so many accessories available for it, everything from pocket clips, holsters, head straps, diffusers, colored filters, traffic wands, etc.
4.) Availability in brick and mortar stores - gives a person the ability to actually see and handle the merchandise before purchasing. Also makes it much easier to return in the event that a buyer decides the multi-mode mini Maglite LED is not the light they are looking for.
Regarding the blink mode, yes it is not a strobe function by any means but I do not think a higher frequency strobe mode would be necessary or useful for it, anyway. IMHO the slow blink it currently has is better than a strobe mode and would be great for use as a warning beacon.