Ali, I have not found this to be the case with OIS on the Sony DSR250, the PD150, the DVX100a and the Canon XL2. I've done lots of moving around hand held shots with all those cameras with the stabilization on. IF, however, you try to make a move when the camera is mounted on a tripod, you will get the smearing effect which is no good.

I've noticed no different in the rendering between the two cameras on taped images. The only time I see a difference is when I am viewing what I am shooting through their respective viewfinders.
The DVX is WYSIWYG on its big LCD, the Canon is very stroby. One of a few complaints concerning my XL2 's viewfinder.