I am contemplating getting a digital camcorder, specifically the Sony DCR-TRV22 MiniDV Handycam. I want a camcorder with an ADC (analog-to-digital converter) so I can convert old VHS videos to DVD. The digital camcorder will receive VHS video via S-Video, it will convert the analog video into a digital DV format in real-time and passes the feed through to my computer via Firewire (which incorporates both the audio and video signals). I can then apply filters to tweak the video and audio quality, organize the video clips, and burn to DVD.
I also plan to use the digital camcorder to record new video. Being able to review my waterski course passes is an invaluable training tool. :-)