I was wrong about how undercharging can damage batteries. If you keep undercharging the batteries, the batteries will permanently lose their ability to accept a full charge. In the worst cases, undercharging a 1600mAh NiMH battery will ultimately reduce its maximum capacity to as little as 1000mAh.
And contrary to popular belief, slow-charging nickel-based rechargeable batteries (especially NiMH batteries) can actually cause more harmful damage to the cells than proper rapid-charging! That's because the batteries can actually be overcharging even though the cells feel cold to the touch - and NiMH batteries have almost no tolerance whatsoever for overcharging. What's more, slow-chargers have no charge termination other than a simple timer.
The best type of charger, IMHO, is one that fast-charges batteries in three hours or less, and provide sophisticated means of charge termination ("smart" chargers), and use independent charging circuits for each cell (so you can charge batteries individually). Such chargers don't come cheap, unfortunately - expect to pay at least $40, and usually much more $$$, for a small 4-cell AA/AAA travel charger that provides those very features. Fully charged in such an expensive charger, NiCd batteries will usually last through 1000 to 1500 full charge/discharge cycles, while NiMH batteries should last about 500 cycles.