So, after about a three months of debating on what HD video camera I wanted to buy, I completely switched gears and bought a Digital SLR still camera. Why you ask? The Canon T1i is a hybrid DSLR that shoots HD video (720p at 30FPS, about what a movie downloaded on Xbox Live would look like) and 15 megapixel stills.
I know equipment that try to do too many things often fail, and I do think Canon failed at building a usable everyday video camera--it won't auto focus while recording, audio is poor and BlueRay quality HD mode (1080p at 20FPS) is too slow to be useful. However when I see clips like this, I get excited about shooting video with a real 35mm lens.
If you click through to YouTube you can watch it in HD, but even there it's still not the full resolution of the 720p mode of the camera. (BTW, the 500D is the European version of the T1i, so same everything.)
I've got lots of things to figure out like manual focus, camera support, power, etc, but I think that DSLRs that shoot video will be the wave of the future.
It arrives tomorrow, so I hope to shoot some test footage this weekend.