closed as not constructive by JonW♦ May 5 '12 at 21:21
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Gowalla use illustrations for their badges / awards
Carbonmade has great illustrations all over its marketing site, which do a great job of setting it apart from competing sites.
Get Satisfaction has a lot of well-integrated illustrations. They're very beautiful and detailed, but they're not distracting or gaudy.
Brightkite still uses illustrations but not as extensivly as before.