Well, 35mm adapters do not require as much editing in post, and would have a more natural and gradual loss of focus. Consider a shot of a brick wall, like the one in this video at 00:13 seconds:
For me, I enjoy editing, but would much rather be on the field. I would not be the person to roto out a tree and its leaves blowing in the wind, but for simpler shots (ex. a close up on a person), doing this in post wouldn't be such a bad solution.
As for quality, versus my adapter, the photoshop idea probably would win (depending on the subjects being roto'd out). Nicer DIY or professional 35mm adapters would be ultimate, however.
Either way, I would not consider my adapter field worthy. A professional adapter or a better DIY adapter would definitely be worth some considering, on the other hand, especially if you desire the cinematic DOF and organic look of film.
On a Roll:
Yup. It wouldn't be that practical for weddings. Maybe for some moments, but it requires a lot more attention than is possible for a lot of the work videographers do in weddings. It also cuts down light somewhat.
For the upside down image: There is actually a hack now (at least for the HV20) where you can trick the camera to flip the image for you. (it thinks that the lcd screen is flipped out facing forward - if that makes any sense). It does require some disassembly of the camera though, which is a little sketchy :?
I'm glad it caught your interest.