Pros: Good, balanced sound. Comfortable. Not isolating. Relatively inexpensive.
Cons: Fall out of the ear easily
I've got 3 pairs of these - two came with iPhones (mic version) and one with an iPod Touch (no mic version). All sound the same.
The EarPods sound much better than I expected they would, and despite owning many more expensive headphones, these have a regular place in my rotation.
Sound is natural and nicely balanced - very pleasing signature.
For the most part, I use them in the office, where I want to be able to listen to music but also to hear others around me. My other headphones are either too big and bulky or too isolating.
The only downside for me is that they slip out easily, and falling out halfway on one side leads to very imbalanced audio. This is the flip side of their superb comfort and fit.