The VIX is interesting because when the index is this low, it's all about timing the next eruption in volatility. The market can do nothing for months, like it did in the first half of 2011 ex-the earthquake/tsunami in Japan. But a low VIX can also mean, or present the idea, that volatility is cheap (S&P option premiums) to hedge against a fearful move in the S&P 500 index.
But now it gets confusing, because, according to the Volatility Sonar Report, VIX option premiums are currently expensive (VIX implied volatility is high), which is why traders are selling VIX puts to gain long exposure to VIX futures. Are VIX option premiums high because of the TVIX (VelocityShares Daily 2x VIX ST ETN) drama? It appears so. I found a post at FT Alphaville from 3/26/2012 with a Barclays note that said: "VIX implied volatilities continue to trade at a premium to our fair value probably due to recent increase in the AUM of leveraged VIX ETPs."
Here's a guest post on selling puts that you might find interesting: Two Ways To Gain Exposure To Financials With Less Risk (from 10/2011).