One common question when using Canon flashes for wireless control is whether to get the STE-2, or a 550EX/580EX/580EXII. Personally I ended up with the STE-2, 430EX and 580EX. Given that equipment, I still use the STE-2 whenever I am doing wireless work. Any I think it is a useful tool. Here is a run down of the features I find most important from a wireless perspective:
STE-2
1. Small and lightweight.
2. Handy for low light focusing when you aren't using flash.
3. Uses IR for wireless transmission, so no visible flashing to communicate with the slaves.
4. Negative: uses odd batteries. Positive: since it only does wireless the battery last a long time.
5. Auto e-TTL only. Cannot do manual power without going to remote flash to change settings.
6. Limited to 2 groups - but then you must have at least 3 flashes to need more than 2. If you actually have 3 flashes you can set them to three different manual settings and 'fake' it. Total non issue unless you plan to buy more than four flashes.
7. Works on a G10/G11 or any G series and some of the Powershot compact cameras. This can be really handy since having a 580EX on top of a G10 is pretty top heavy.
8. Requires direct line of sight outdoors, but does a very good job of hitting the flash sensor by bouncing around indoors.
9. Quite a bit cheaper than a new 580EX II.
550/580EX:
1. Can do 3 groups of flashes. This is of limited use to me since as mentioned in point 6 you can always go to manual control. I can't see using three flashes on eTTL very often - hard to tell what is going on with three flashes all dynamically changing their own settings. Also note that if your controller is on the camera and you don't want the third flash group there you must actually have a fourth flash.
2. Doubles as a flash! You can of course actually use the 550/580 as a flash by itself - but with a 430/STE2 combo you can use the 430.
3. Much more control over remote flashes.
Bottom line with the STE2 is that it is a useful piece of gear, but the advantages and disadvantages will depend on your situation. If you need a long range reliable indoor/outdoor triggering solution you'll need to look elsewhere (PocketWizard?) but if you needs are simpler and you have a 430EX it may be the right tool for you. Note that the new Canon 7D has the trigger built in, so the STE-2 may be coming soon to an online auction near you...



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