Wow, even my ancient camcorder that used tapes used the compact ones, and that was in 1989!
Sorry, I was laughing with you, but I couldn't resist! You're going to make it hard for me to convince DH that I *need* to replace our "really old" 2003 camcorder that records to DVDs. I want one with an internal hard drive, so I don't have to carry around tons of discs when we travel.
That being said, I have really enjoyed our camcorder that records to DVDs. You just have to wait until the dics is full to finalize it, so it will play on your DVD player. (I am too cheap to finalize it before it's full - they are expensive!)
The pros are that you can then take your disc anyplace that has a DVD player and watch it. You can also connect the camcorder to the TV to watch an unfinalized disc.
The cons are, pretty much worrying about having enough discs. This bit us in 2005. You have to format it when you first put it in and very rarely you get a bum disc. So we're on vacation, something I want to record happens, the old disc is full so I put in a new disc, it won't read, so I put in ANOTHER new disc, wait for it to format, and by that time the thing I wanted to video is over. There's also the matter of HOW MANY discs to you carry around with you. They aren't heavy of course, but they only hold 1 hour each, so if you take 20 of them, that's a lot of bulk in your luggage.
On the other hand, if you're using it at home, then it's not an issue. It's just when you travel that it becomes a bit cumbersome.
I looked at the one you like and noticed there is a newer model, that is also cheaper.
http://www.amazon.com/Sony-DCR-DVD650-DVD-Handycam®-Camcorder/dp/B001P3O3O0/ref=dp_ob_title_ce
It has the Zeiss lens (excellent quality!) and a 60X zoom.
Mine is a Hitachi, and it's been a great little camcorder, but of course, they don't make it anymore. I will say that when I upgraded to it from my old VHS one, the difference was amazing, both in quality of the vids, and in the weight and size of the camera.
I'm now thinking about this:
http://www.amazon.com/Sony-DCR-SR47...sr_ob_1?ie=UTF8&s=photo&qid=1255578745&sr=1-1
It also has a Zeiss lens, and can store up to 45 hours of video on its internal drive. This would mean not having to haul discs on vacation. However, if your DS just wants to make movies and take them to friends' houses to watch, or whatever, this might actually be a disadvantage for you. You'd have to hook the camcorder up to the computer (or your DVR) and burn a disc, I believe.
I can't help but wonder, with all the great free and inexpensive movie-making software out there, if your DS would like to upload his vids to the computer and edit them, add effects, etc. I would go talk to the salespeople at someplace like
Best Buy (and make it clear you are JUST LOOKING) and get them to tell you the pros and cons of the discs vs. the internal storage camcorders, so you can get the one that's best for your DS's needs.
We've found very good prices on these at Sam's btw. There's not a Costco near us, but I'll bet they have good prices too. If you belong to one of them, don't overlook it as a source for price-comparison. Also, Sam's will take it back if it breaks, no expensive extended warranty needed!
). 
