Now I don't know about you, but I like, no, LOVE, the Online Users block by Andy J. Davis. It lends an air of Web 2.0 for Moodle. The feeling of a learning community that the block helps to foster is priceless. This block is useful for students and teachers to know who is online.
Figure 1: Online Users block.
A Moodle core block.
A Moodle core block.