I say underappreciated because it has all the good things you could want of a URL shortener (it makes URLs very short, is fast, scalable, and should last), yet everyone I know is using bit.ly, ur1.ca, or, worse, tinyurl.com.
The URLs generated by ur.ly use capitals, lowercases, and numbers, and the domain is 5 characters (u, r, ., l, and y), making it give one of the shortest URLs of any service (only one I know of that gives shorter is to., which doesn't work everywhere). It's also hosted on Google App Engine, so it'll be reliable and long-lived.
For comparison...
| [15]to. | http://to./5xn8 |
|---|---|
| [17]ur.ly | http://ur.ly/icM6 |
| [19]ur1.ca | http://ur1.ca/0tiyk |
| [20]bit.ly | http://bit.ly/da408z |
| [26]tinyurl.com | http://tinyurl.com/36r5vuc |
| [37](original) | http://www.notriddle.com/blog/45/ |