Here it is
http://sqlservercode.blogspot.com/2006/10/hello-output-see-you-later-trigger-or.html Thanks for the link. Yeah, I agree with the article, and that's the way I present it when I do sessions on T-SQL '05.
OUTPUT is a great shortcut if you want immediate feedback on what was inserted or changed. For years, developers had to do round-trips back to the server to get PK values, calculated fields, etc...now they have a better way.
But yes, it shouldn't be used in place of triggers. Audit trail functionality belongs in triggers.