This camcorder looks like a mobile phone, because of its appearance and its size, but also by the quality of the images.
The shots are substantially the same level of quality that iPhone, with the same problems (fixed focus, no autofocus, no optical stabilization, visionary management of exposure ...).
Although the pixel resolution is better than on a VGA phone but the final images have the same amateur side.
Everything depends on the use we want to do, but most of the time I use my phone instead this camcorder. Except to go in the water or on the beach, of course.
I imagine that the iPhone 4 will be the main competitor of this camera, at least for the public that does not need waterproof.
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Update 28/06.
A short video to give an idea of the possibilities of this camcorder, water and outside in bright light. This is a crude assembly (no filter, color correction etc ...).