I absolutely love my new Kodak Zi6. It's a Flash Memory (SD Card) based HD video camera. They're very cheap (around $140). Admittedly, it doesn't have the bells and whistles of a fancy camcorder, but the size and portability are awesome.
I carry it in my pocket almost all the time. That's a big plus with kids. At any moment, one of the boys will do something and I can now quickly record it.
I like that I don't have to mess with capturing video to convert it to DVD. I can quickly back up raw files to DVD. SD media is cheap. I've got an 8 GB card for $20.
Here's a clip you can watch in HD
http://www.vimeo.com/4950547
and here's another clip
http://www.vimeo.com/4787279
Again, it's not perfect for everything. I like my Canon for long recording and zoom capability (school plays, full T-Ball games, etc). But the Zi6 is my new favorite.
Amazon has a Refurb for $99
or
a new Zi6 for $139