I'm sure there are many sources for inspriation, but I stumbled across this not too long ago: http://www.makebetterflyers.com/
As for which is better, Illustrator or InDesign, I would not use Illustrator if there were a lot of text. As pointed out if you're comfortable with Illustrator use that. You might try doing the text in InDesign though... maybe you'll find you like it better!
Europe, Middle East and Africa