Flip and GoPro both offer(ed) <$500 rechargeable compact consumer HD cameras through electronics retailers. You can find a number of discussions where buyers were weighing them against each other.
So it's not far-fetched they'd have become more direct competitors, with some sort of 'Action Flip' arriving, if Cisco hadn't essentially given up on retail/consumer video.
(Red differs in form-factor, feature set, pricing, target market, and distribution channel, so no, the same ripe potential for competition with GoPro isn't present.)