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Hi Paul – there are a lot of opinions, but I shoot with both a high-end interchangeable lens still camera that shoots great video (the Panasonic GH3) and a high-end consumer camcorder that shoots decent stills (a 900 series Panasonic camcorder), and I get great video and stills from both.
But when I carry one camera, I carry the GH3 – because it offers the most flexibility – with its interchangeable lenses, more powerful built-in flash and easy-to-access external controls.
The GH3 has much higher still image quality – and its video images are just as good, if not better than my camcorder's.
It is a mirrorless "DSLM", however, and does not suffer from the limitations ofconventional DSLRs, with their limited continuous recording times (no more than 30 minutes) and viewfinders that go blank when shooting video, forcing you to use the LCD to compose and focus your images.
Here is what it can do:
Narrative:
Travel:
Documentary:
Here is the still image quality you can expect: http://www.flickr.com/groups/gh3/pool/
If you want the best of both worlds, I highly recommend this camera.
Good luck and hope this was helpful,
Bill