I think so, I have a lot of criticism about some of the move they've made since they were bought by Yahoo, however, the site manage to bring together artist, tourists, people who just want to show their baby or cat to their friends, amature and professional photographer as well as just people who owns a camera - people use it in a lot of different ways and for different aims and it all seem to work well together.
I don't know how well it compete with other sites as far as storage space and so on, but the community that formed on flickr is really irreplaceable for me, I made a lot of friends through the sites and became much more secure about my artwork and photography. Also it's been a really great way of keeping in touch with friends.