Well it shoots full 30 fps SD 480p video, h264.  And you're got to admit Apple knows video.  You can watch videos (shot in broad daylight given) from an iphone on my HD screen no problem.  Looks pretty decent upscaled.  However the 720p crap from my 12mp sony is just crap.  And so is most of the consumer miniDV.  Ane the iPhone video certainly looks better than most of the mpeg video cameras recording right to mini DVD or files.
I accidentally said DVCam earlier.  It's the same format as miniDV for the most part, but you'd find it in pro grade cameras that are going to have better glass and larger multiple ccds.  Of course it's not better than DVCam.  
And for the convenience, I really have no reason to pull out a miniDV camcorder to get some video of my son doing something.  Besides, by the time I find it and realize I don't have tape or that the battery is dead, my son would have quit doing whatever cute thing he's doing. I've captured some great video with the iPhone 3Gs.   
Oh, and the top bar in my macbook looks a lot better than that.  Nicely spaced out.  Not all jammed together.  Once again, I think they're trying to do too much.  It looks like you'll be able to click on those little icons, so maybe that's why there are so many and they're so large.  But that's just not good small interface design.