I've never liked the quality of light LEDs produce; it's monochromatic and generally has a blue tint to it. However, I've used them since they came out because LEDs don't often fail when dropped, last forever and give longer battery life. Never replaced my incandescent flashlights though.
The newest Cree LEDs are ~3-4x more efficient than the Luxeon LEDs of only three years ago (giving even longer battery life/brighter output). Also, they can be had in what they call "warm" or "neutral" tint that looks much closer to incandescent light.
Anyway, if you've been dissappointed by LED flashlights because you didn't like the crummy color of the light, they have improved quite a bit recently.
On lithium batteries, they're great for emergency lights because they've got high energy density, hold most of their charge even after sitting for 10 years, don't leak like alkalines do, and work great in cold temps. They're also lighter weight. It's nice that AA and AAA lithiums are common now.
It's amazing that you can now get a 1 AA batt Cree LED light that will last an hour on a batt, and put a standard 2 D cell Maglite to shame.