Video cameras are adding huge zoom capabilities. Optical zooms with image stabilization. The Pansonic SDR-H90 above is 70x true optical (think of it as a 37.9-2650mm (4:3) still camera telephoto range). The camera has a builtin 80GB drive and takes SD card with up to 32GB of memory for combined long play record of over 100 hours. Although not an HD camera it deliver 705 x 576 MPEG2 images and has specialized image stabilization.
The camera will record up to 3ohours of video using the LP option at 720 x 480 and can take still images at 250K at 16:9 (roughy 800 x 350 pixels) or 340K at 4:3(roughly 750 x 450 pixels). Given what still cameras like the Casio EX-F1 can do and deliver HD video, these are prosaic numbers. So it is likely the monstrous zoom along with light weight(only 10 oz) and relatively long battery life of 2-4 hours of recording per charge that will be the attraction for these units.
In effect low price, YouTube size videos with huge zoom assisted by image stabilization plus handy size and weight will be the attraction of these units. And I know many a Web site developer that would be more than willing to live within these dimensions.
In the longer term superior image stabilization, low lux and huge zoom ranges coupled with either handy size and weight may be the only way camcorders can fend off the invasion of digital SLRs with HD video recording capabilities like the Nikon D90 and Canon Mark 2D. I have suspicion the convergence of video and still will leave a market with asymmetry – I just can’t tell who comes out on top – video or DSLRs.