Hearkening back to my earlier posts about animal cruelty, here's a great report from The Straight Dope on the question:
Is 'Cage-Free' just another marketing ploy for eggs, or are the chickens really better off?
For those unfamiliar with the Straight Dope, it's a weekly column where Cecil Adams, a Chicago reader columnist, answers those nagging questions like "Why do people say 'Jesus H Christ'" and "If nothing sticks to Teflon, how does Teflon stick to the pan?". Always good for a laugh and generally good for making the world a little bit less confusing. You can even sign up to get it every week by email.