Wow, Kirk Mastin taped a Flip video camera to a $3,500 Canon XH-A1 + pro mic, and filmed a mini-short with both of them filming identical footage. He then runs through it one after another, and you can barely tell the difference. The main difference actually is the sound quality, and even that isn't significant at all.
This is apparently the video blog entry that caused the NYTimes to pick up the Flip camera. Anyway, Kirk Mastin, your blog rocks.
And also I just finally ordered a Flip Mino HD myself. I'm absolutely inspired by the storytelling possibilities.