Canon has announced the latest in its consumer DSLR line with 15 MP and 1080p (@20fps) / 720p (@30fps) video. Assuming Canon inserts this camera at the logical price point (presumably slightly cheaper than Nikon’s D90), that pretty much sets a new bar for DV cameras which will either need to match the 500D’s image quality or come in under its price. It also means that Nikon will need to respond with a D90x (say) that offers 1080p (and, I hope, 14-bit RAW).
And remember that the Panasonic GH-1 is already out there, waiting to eat their lunch. And while the Panasonic’s image quality may be marginally inferior to that of the Canon and Nikon DSLRs (the D90 in particular has ridiculously good low light performance), the GH-1 is smaller, cheaper, has it all over them on the video side of things.
And one — well two — more things. The GH-1’s rear video screen swings out and twists, like a video camera’s, and its electronic viewfinder works for video, like a video camera’s. Shooting video on a conventional DSLR is going to get old, fast.
Oh and one more significant advantage of the GH-1 for shooting video — its autofocus works continuously while shooting.