Relative dates are awesome. They're easier to understand, and save us a lot of space.
We use the timeago [1] jQuery library. It shows relative dates in an abbr tag and keeps the microformat in the title attribute, which shows in a tooltip on hover. We use the en-short [2] locale, so it formats times like '1y ago', '1mo ago', '3m ago', etc.<p>I think Gmail's format is the best of both worlds, but we don't have the space for it in our sidebar gadget.
Finally, the screenshot argument isn't very convincing, and neither is machine readability or ambiguity. They're formatted for humans, and they're ambiguous on purpose.<p>[1] <a href="http://timeago.yarp.com/" rel="nofollow">http://timeago.yarp.com/</a>
[2] <a href="https://github.com/rmm5t/jquery-timeago/blob/master/locales/jquery.timeago.en-short.js" rel="nofollow">https://github.com/rmm5t/jquery-timeago/blob/master/locales/...</a>