This is a silly line of thinking, IMHO. Price is only a small part in the whole buying proces. Hard drive cameras can be way more expensive because of so many moveable parts, and not necessarily because they are better. Hard disk drive cameras although great for storing lots of video, break more easily (do an Internet search, talk to stores and talk to customers) and you'll see this), or, have the potential to break more easily. If your camera needs repair, you are looking at some serious repair cash to fix it, not to mention you have no camera for the entire length of time it needs to be repaired. Most people I would think would buy a new camera, in this case. If you get a combination camera though, then you at least have some leeway should the drive fail. Not sure which exact model of Everio 120gb camera you bought, but when we did our comparisons, the price of the new Sony that I bought is actually more than the Everio, but you need to compare zoom, lens quality and other features for the price. You can get a pretty good camera for between $250-$350 range - your $200.00 comment might have been in reference to the new flip cameras? Which I will agree, aren't that great as they don't have zoom features, and so for us with mostly taping kids and Disney World, this is a much. Our new Sony is only a bit bigger than the Sony Flip we originally purchased, and so it is a great size.
We saw the Everio and didn't care for it as much, and much research will tell you that the battery does not last long at all, as that hard drive requires major juice, so you have to buy another battery, or, suffer with the one it comes with and risk losing out on video.
Your other point about still shots is not that valid either - most of us amateur photographers know that the best stills come from a dedicated digital camera. Again, the more tricks and feautures you have, the more risk of breakage, as far as we are concerned. It's a great feature to have for convenience, but again, I would not use this as the sole determining factor of whether to buy a camcorder - you are buying a camcorder, and not a digital camera.
I am a major researcher, being that I'm a teacher, so we not only researched, but tried cameras out at stores, took one home to try, as well as with friends, not to mention major store and Internet research. The prices are great right now on all cameras (even disk drive cameras have come way down, but we don't find value in them), and you can get a seriously nice camera, like our new Sony, as mentioned above, for a great price. We didn't go the HD route, even though we have a sweet Samsung Plasma TV at home, because there are still some software issues. We have 2 very fast, media computers with tons of memory (several portable vaults and memories) and they can more than handle HD video, but we opted not at this time. We wanted simple in terms of the whole capturing and editing video, so we went with the Sony, which by the way, also has built in memory.
There are many variables to consider when purchasing cameras, and price as far as I'm concerned, is one of many, and should not be used as the sole determining factor.
Tiger