It isn't pocketable, but the relatively compact Panasonic Lumix DMC-FZ35 ($400 as of 11/12/09) is quite simply one of the best fixed-lens cameras out there for both stills and HD video. If you can deal with slightly grainy, non-1080p video footage (the FZ35's video resolution maxes out at 720p), it may be the ideal hybrid model to serve double-duty as a camera and camcorder.
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Panasonic Lumix DMC-FZ35K Black Digital Camera
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$324.95 - $399.99
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Review:
Panasonic Lumix DMC-FZ35 Lets You Fine-Tune Photos and Video
The Panasonic Lumix DMC-FZ35 is a powerful, semicompact megazoom camera with an awesome range of controls for both stills and video.
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