HEALTH is good in my book but No Age is definitely where it's at when it comes to buzz and quality/interesting material, at least in my opinion. They were the breakout stars of 2007 and building on it, it seems.
Mika Miko are SO much fun live and their music is pretty fun too if not exactly great. It sounds even better after seeing them live, though.
The Smell made me love living in LA. I used to hate it here but the scene is pretty electric and contagious right now. Actually, I think it's been moving towards a cool down for awhile though, who knows?, but I feel a strong sense of loyalty to and gratitude for the Smell.
Also, I'm not sure if you guys have heard of them yet but Foot Village is excellent as well -
http://www.myspace.com/footvillage.
They just released a new album and are about to go on tour. I highly recommend you check em out live.
I also LOVE Abe Vigoda, who pal around with Mika Miko and No Age and are like the the third part of the holy trinity of Smell-based bands if there ever was one -
http://www.myspace.com/abevigoda.
Their older stuff had a more no wave sound to it but they've gotten more tropical and pop-y lately. You can hear their past album, where they still have some of that no wave stuff, here -
http://www.last.fm/music/Abe+Vigoda/Kid+City