Haven't/Won't be using the new iPad's video record feature at all. And I don't know how you can replace a stand-alone HD camcorder when the optical zoom is so limited and the usage in low light is almost impossible on the iPad/iPhone 4s.
I will agree that its a nice to have feature for quick snags. But going to the kids holiday programs at school, recording their soccer games, etc....no way would I even think about using an iPad as a replacement for an HD camcorder in those situations.