Shooting at high ISO can yield usable images if shot under the right condition. This is my favorite recipe for a successful high ISO photography using available light:
The following images were taken during a gathering at Riddhi's house in Clifton, NJ. All shots taken with a Leica M9 and a 50mm Summicron at ISO 1600 wide open at f/2. For moving subjects (people especially children), I would set the shutter speed to at least 1/45s to 1/60s.