I turn off vibration effects for fighting games, but keep them for just about everything else that supports them. Many recent games do a pretty good job of incorporating it in a way that enhances the game, rather than acting merely as a gimmick.
I agree with the people here that said that racing games and first-person shooters seem to benefit most from the vibration effects. Some other games such as Rez, Frequency, and Amplitude also use it well. Metal Gear Solid (which I've only played the demo of) also struck me as an example of an earlier game that used vibration to good effect.
"PSP will elevate portable entertainment out of the handheld gaming ghetto." -- Kaz Hirai
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