I'm using Digital one(MiniDV) to make VCD of my son, the quality is so great, much better than VHS and 8mm(500+ lines vs. 240 lines). And with digital video files, you can edit them easily,
i.e. add sound tracks, cut/insert clips, add transitions, just like a TV professional! Yes, Digital Camcorder is not for making still images, it's for making fun video.