I do use my 16-35 F4 L IS for interiors (very old Churches etc) and haven't found a need to turn IS on yet. Don't find a need for it with my 800mm so 16-35?
RDKirk - IS may be great for video, I will take your word for it. I simply have never used any of my current gear to shoot a single second of video so I have no idea!
Coincidentally I was bouncing some ideas off a Canon Rep last Thursday and he totally agreed with my opinion that IS (older systems) does slow AF acquisition and can impair tracking - perhaps this is the reason for Mode 3 IS?
Naturally, back when I had my 350D or 20D, IS was a godsend! These days I just can't really find a use or it often enough to justify the extra size, complexity and cost. If others find it useful then great - use it. For me IS has just cost me too many shots so I don't want it on long lenses and have yet to find a use for it on short lenses.
Just me
Life is for living, cameras are to capture it (one day I will learn how!).