From my days of RC racing I came to learn a fair bit about the care and use of rechargable batteries. Most people will recommend you get NiMHs due to them being a more modern battery than NiCads but NiCads still have uses and which to get depends on what you want to use them for.
The first thing that needs mentioning is 'memory effect'. It's rubbish. It doesn't exist (or more correctly it's not the effect that most people associate the term with and is not relevant to domestic battery use.)
The reason that nicads suffer reduced capacity over time is due to their finite lifespan combined with overcharging. Overcharging is the killer of rechargable batteries and great care should be taken to avoid it. (Using a peak charger of some kind will give your batteries a much longer lifespan than a timed one will)
The main advantage that Nicads have over NiMH is with low drain applications. NiMHs are not very good at retaining charge for long periods of time so for things like clocks and to a certain extent wireless mice & keyboards where batteries do not need changing often then either NiCads or conventional alkaline batteries may be more suitable.
For high drain applications such as cameras where batteries are frequently replaced then High capacity NiMHs are where it's at.