I read a great article in the latest copy of Make magazine about using PIC microcontrollers in hobby electronics projects. I used PICs in a couple of Electrical Engineering courses at UC Davis, and found a lot of joy in having a program written in C and assembly language take on a physical representation through a combination of integrated circuits (ICs), resistors, LEDs and such. Upon graduating, I became very software-oriented and left my EE work behind.
Microcontrollers are general-purpose, low-power, programmable computers that can be found in any number of household devices. Any time you use an electrical device requiring some degree of logic (i.e. microwave, VCR, etc) but not a full-fledged computer, it's likely that you're interacting with a microcontroller. The potential for creating fun embedded-programming projects is huge!
It's amazing how inexpensive the hardware has become: the industry-leading company Microchip produces microntroller starter kits ranging from $36-$50. They feature microcontroller programmers with USB interfaces, and can be used with a broad range of computing platforms (including Mac OS X). I'm probably going to buy the PICkit 2 product, which supports 8-,14-, and 20-pin microcontrollers. The additional pins typically provide more input/output lines. The only additional tools required are electrical components (resistors, capacitors, switches, LEDs, etc) and a regulated power supply. The later might be the most expensive component, but I should be able to get a low-end model since PIC projects usually require just a fixed 5-volt power supply.