I finally bought a digital video camera a few weeks ago before leaving on our vacation (a Canon ZR-50 - for $380 from digibuy.com, a good deal - it supports manual exposure and focusing, which I like).
Apple does it right: video editing
I have two cheap Macs: an iBook and an old 450 Mhz G4 tower that my Dad gave me last year when he upgraded. Both run the most excellent iMovie video editing application. My wife and I were both pleased at how simple it is to edit video using iMovie - Apple really did it right with free video editing support for Mac OS X. My Dad does high end video editing and animation and has all of the professional software packages, but for now (and the forseeable future) I think that the free iMovie will work for us.
Now all we need to do is to start using the tripod when we take video :-)
BTW, while I am heaping praise on Apple: even though I keep Windows 2000 and Linux servers around for various work tasks, I do almost all of my Java, Common LISP, Python, Prolog, Smalltalk, etc. programming under OS X - really a great platform for developers (even on the two relatively slow Macs that I own).