The following article has interesting remarks on this question,
particularly pages 407--408:
\bib{MR1163629}{article}{
author={Knuth, Donald E.},
title={Two notes on notation},
journal={Amer. Math. Monthly},
volume={99},
date={1992},
number={5},
pages={403--422},
}
Among the arguments given in favour of 0^0 = 1 are (1) that we might
like the binomial expansions to hold in general; (2) that there is
precisely one function from the empty set to itself.
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