I prefer the kind of cameo that can bring a smile to someone in the know, but not distract from the story if the reader doesn't know about it. Kathy's example of using a friend's first name is perfect. The friend appreciates it, but it doesn't bother the flow of the story at all.
I do agree that obvious cameos, deliberately planted for the humor of the story, are fine. But count me in among those who would rather not lose the flow of a serious story by an overly obvious cameo.
BTW, Paul, you asked what made me start this poll. You can read the comments on Lab's Epiphany to see what struck me as a cameo. Mary Suedom self-insertion? My goodness!
Hazel, who doesn't mean that seriously