I know a lot of people shooting HD, but going to computer through firewire in SD resolution. So I definitely wouldn't record in SD if I could avoid it - but in my opinion SD does have a place for the next 3-5 years for many of the reasons already mentioned.

It's worse because consumers have been led to look for the letters HD, and on seeing them, assume it means better. If they can buy an HD camcorder for £250 and watch the pictures on their HD TV they are happy. The trouble seems to be that the image from these camera, despite being 1080i or p have quite average detail. I'm still seeing better pictures on DVD from my SD kit than from an 'HD' cheapo camera. Nobody is asking me yet for HD material, and one recent one shot on HD for production convenience, was accepted without any comment as to how good it was visually.