Common white LEDs are just red and green and blue LEDs combined into a single package. Since LEDs have a "very" strong chrominance peak for their color design, this means a relatively poor CRI rating.
Phosphor doped LEDs, less common, can approach a more continuous spectrum, but probably not photographic quality.
They're intended for video use but I have heard of some photographers using them. I'd like to try them out but they're very expensive. I'd want one of the bigger ones for photography, myself, as they put out more light and it would be a larger source for softer light.
(I know the above are normally "hot" lights but they are very good fill sources and you can get accessories. Frezzi is the good stuff. The LED insert at top is just an option for low light.)
If you're only going to buy one light, a flash is definitely a better purchase for most things. However, video lights are used by many wedding photographers because they are so much quicker to use and there's not a lot of time to spend adjusting light position when doing wedding portraits. Hotlights or LED lights are WYSIWYG, whereas flash usually takes longer to get fine tuned, for metering (if you don't use a meter, but of course using a meter would also take extra time) as well as direction and quality of light.
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Phosphor doped LEDs, less common, can approach a more continuous spectrum, but probably not photographic quality.
Tri-color LED spectrum:
http://upload.wikimedia.org/wikipedia/en/f/f4/Red-YellowGreen-Blue_LED_spectra.png
Phosphor LED spectrum:
http://upload.wikimedia.org/wikipedia/commons/4/48/White_LED.png
Daylight, incandescent and typical fluorescent spectrum:
http://www.phys.ufl.edu/~avery/course/3400/light/blackbody_color.gif
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Neil
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... and electronic flash has many other desirable properties to make it best for photography in most cases.
There are some other interesting LED lights for the adventurous and some video applications:
For the DIYer or Frezzi Micro modifier:
http://www.bhphotovideo.com/c/product/554535-REG/Frezzolini_97108_LED_2_Micro_Fill_Lamp.html
(http://www.bhphotovideo.com/c/product/262657-REG/Frezzolini_91307_MRF_12P_35_watt_Micro_Fill_On_Camera.html)
or (http://www.bhphotovideo.com/c/product/262655-REG/Frezzolini_91304_MRF_4x_35_watt_Micro_Fill_On_Camera.html)
(I know the above are normally "hot" lights but they are very good fill sources and you can get accessories. Frezzi is the good stuff. The LED insert at top is just an option for low light.)
Other possibilities:
http://www.bhphotovideo.com/c/product/650628-REG/Dot_Line_DL_DV60_DL_DV60_Video_DSLR.html
http://www.bhphotovideo.com/c/product/634861-REG/Bescor__LED_35_35_Watt_Broad.html
Dimmable and alternate power choices:
http://www.bhphotovideo.com/c/product/656981-REG/Bescor_LED150_LED_150_150W_Dimmable_LED.html
All of my previous observations and links regarding white LEDs still hold however.
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