Many hosts still do the "buy hosting and enter a drawing for a free notebook etc". I know of one dedicated server company that was running a promo in conjunction with a car dealership which raffled off a car. Sounds great, until you find out that it was a used car dealership and while the car did still cost more than $7k, they caught a lot of flack for it.
Try to do something nice and STILL get blasted for it - never good!
FatCow did something similar with a "host smart, drive smart" promo - they gave away a Smart Car. I never did see an announcement from them on who won or a picture etc. I'm sure they gave it away, but I just don't recall ever seeing the announcement on the winners being drawn.
We used to do DisneyLand tickets for our Southern California marketing campaigns and they worked very well.