Raymond asked me to have a look at ActiveMeter, which is a free, web-based website visitor tracker that he's been working on. I'm probably not the best to look at it, as I tend to under-utilize the log data that I already have. Part of this is I think related to tools, so hey, worth a shot.
When I do look at my sites more closely, I tend to rely on my own server logs, so haven't used any of these trackers before (insert an invisible thing into your pages that hits their server). I didn't actually try it on one of my sites, but saw the process, and played with the reports pulled out of the demo (Ted's weblog). But the overall approach looked reasonable. And its definitely nice to have the real time update. I thought the reports were very professional looking.
The emphasis is on visitor tracking over lower-level stuff, which makes sense. You'd find the ability to do similar analysis in some of the better-than-free-crap desktop software packages. I don't know if there are other free or web-based tools that are more visitor oriented. There's more that can be done with the visitor-oriented stuff, but its a good start. Things like aggregate as well as individual data would be helpful (top paths through the system, top entry pages, etc.). Similarly, being able to be alerted on interesting events (changes in trends etc.) is a useful direction it looks to be going towards, but its not really there yet.
One suggestion had to do with data presentation. With the amount of data on the screen, its hard to get much of an overview of anything (e.g. the 'visitor path' or 'recent pageload' reports can't show much data). To me, this would limit their usefulness. I can't even imagine using it on for example the main CourseForum web site (on the order of 10,000 unique visitors per month). If there's ways to present that in a more compact way, condensing data where appropriate, moving it into rollovers, etc.) that would allow more to be on the screen, and make it easier to spot interesting things. I think there's some not too difficult things that could be done that would greatly improve what's there now.
Longer term, and with considerably more effort, there's probably some very cool things that could be done to make this a much more dynamic, fluid dashboard, giving you a great real-time view into what's happening on your site right now. Definite potential.
I'm not sure exactly who the desired target audience is; for me its not compelling enough to use. But I'm also probably the type that if I'm going to take this seriously that I'd be looking at a more expensive desktop product like ClickTracks (~$500), not a free, web-based tool. Again, I don't know the alternatives well, but ActiveMeter strikes me as likely being a definite step up from what a lot of people are using now. Not sure if its delivering enough value for the time you'd have to put into monitoring it, but I think its getting there.