Thinking of buying a few for some handouts... (I tend to deal in BIG files...)
Just don't do what one company did. They were handing out 32 meg (yes, with an M) thumb drives. Their marketting people should have been slapped upside the head. Instead of handing out something decent for maybe 25 cents more, everyone just binned the damn things instead.
Small capacity ones are good if they contain a presentation you're trying to get people to watch. People will keep it as-is. If you give them a 5mb video on a 1gb drive, they're just going to wipe the presenation and use it for their own use.
As a premium, yes, you'd want to give a decent one.
Assure you, people are just going to chuck it in the bin.