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The VLC team has been working (or actually, they call it "support" so they might not do this entirely on themselves) on a new project for quite some time, called VideoLAN Movie Creator, a free video editing software offering features to realize semi-professional quality movies, but with the aim to stays simple and user-friendly.

VLMC (VideoLan Movie Creator) pre-release will be coming soon to Windows, Linux and Mac OS X, but until then, you can fetch the current working tree using Git:

git clone git://github.com/VLMC/vlmc.git

I tried building it, but got an:
launcher/Launcher.cpp:44: error: no 'void Launcher::stopped(int, int)' member function declared in class 'Launcher'
make: *** [Launcher.o] Error 1

Update: I managed to compile, see this: How To Build VideoLAN Movie Creator (VLMC) In Ubuntu

But thanks to radarsat1 user @ reddit, here is a screenshot with VLCM in action:

videolan movie creator vlc

Update: and here is also a video with VLMC in action (thanks to pseudoruprecht!):

via reddit (make instructions inside - but failed for me).