I have a Sony Handycam with a 60 GB hard drive in it and I absolutely love it. I don't have to worry about taking any discs of any type with me or running out of space while filming something or changing a partailly full disc out for a brand new one "just in case". It's so easy to use and I just hook it to the computer and copy the files over. It records in MPG format and each time I hit record it starts a new file name. I dont' have to convert anything in order to play it on the computer or upload to youtube or anything. It also has a dock with a "burn to DVD" button on it that is supposed to make it very easy to burn the clips to DVD when you are ready, but I haven't used that yet (although I have had it for over 2 years now). Mine also has the hot shoe attachment on it and I have Sony's bluetooth microphone for it, so I can clip a wireless microphone to the kids clothing while they are going to see the characters, in a play at school, etc and the camera picks up what they are saying instead of what you are saying. Can't wait to use that in Disney this year!
On the downside, you do have to consider that if the hard drive goes, the camera is useless (not sure if it could be replaced or if the cost of replacing it would be worth it) and if you have not backed up your videos all is lost. I still prefer it to the mini-dvd and just try to make sure all my data is backed up.
HTH!!