Do you share this compromise with your new purchase ? or am I just not up with the times. Please feedback because I really, really want to buy this unit for the kids moments.

Positives:
The size. It fits in my shirt pocket and is smaller than my closed fist.
Video quality. I have played with numerous DV and mini-DVD cameras; none of the video was even half as good as this. I can find no cameras in this price range that produce similar or better quality video.
Fun. This camera sports voice prompts in a sexy female voice… I love it! And when I no longer do, I can turn this feature off.
Versitile. It can take pictures while ercording video, and it doesn’t stop the recording!
Pictures. The 5MP images won’t blow the doors off a dSLR, but they are as good as my 5MP Point&Shoot.
Navigation. It is easy to learn; I’d say I knew the in’s and out’s within 15 minutes.
Editability. I pop the SD into my laptop and voila, I’m in full control. I think it has in-camera editing, but I’ll never use it.
Mic jack. The internal mic isn’t as powerful as some, but the placement of the jack allows for a high-gain mic to be added so it looks like it belongs.
Unobtrusive. I can use this to video people and they don’t feel intimidated. That’s a HUGE plus for capturing natural scenes.
Battery life. Despite its small size, this camera has a pretty powerful battery. It will record about an hour of video based on my experience, which is as much as most Disc-based low-res cameras.
Convenience. Flip up the display and the camera is ready to record… from opportunity to recording in only a secod or two.
Image quality on HDTV. All I can say is wow. This is as good as my digital cable feed, probably better.
Image quality on computer. Nearly as good as on HDTV.
Printability. Stills make good 4X6 prints.
IR Focus. Effective in relatively low-light.

Negatives
Size. The image stablization on this unit is good, given it’s size. But it’s so small it’s hard to pan easily.
Low-light performance. At it’s auto setting though, the camera doesn’t want to drop below ISO 200. It means that when I’m recording in really low light, I have to choose 400 ISO manually.
The shape. A device that conforms to the shape of my hand would be nice.
The display. The OLED uses little power, but isn’t as bright as LCD displays. It was viewable in direct sunlight, but quite washed out. No problems with it when not in direct sunlight.
Viewfinder. What viewfinder? Have to use OLED, which is not optimal in direct sunlight.
Computer requirements. There is so much data in this video that my Centrino 1.4 w/512MB drops frames. This video takes a lot of processing power to manipulate, assuming you record at max resolution. (800X600 at 60fps is fine; it is only the 720X1080 that is too complex)
No threading on exterior lens. There is a ridge which might serve for mounts in the future, but there is no current way to mount external lenses to this camera.
Internal mic performance on this unit is sufficient, but not exceptional. See note about external mic.

If you have been pondering a HD camera, and can accept this unit’s few limitations, you will be exceedingly pleased. I reviewed over 50 digital video cams and am pleased with my choice. I have a hunch this baby’s got a home for a long, long time.