I have used a Canon Vixa HG20 for a long, long time and I am wanting to upgrade. First of all, I'm in the $1000 to $2500 range for my upgrade. I do wedding videos and other events and also so a lot of short film making with my friends as a hobby. I have seen a lot more people using DSLRs lately, and it has me wondering. Should I be looking at Camcorders or DSLR Cameras?...Like I said, my budget is $1,000 to $2,500 and I was to record gorgeous footage for events and make some short films that look great as well...I've been eye balling the Canon XA35, gives you an idea of where my mind is. Thanks in advance!
In my documentary film group we have spent many hours discussing this. We have the HFG30 and XA25, plus several Nikon D810s, Canon 5D3, Sony A7RII, Panasonic GH4 and AG-DVX200, plus several drones, vest-mounted steadicams, etc.
A DSLR or other large-sensor camera with a good lens can produce lush, cinematic video unlike anything a small-sensor camcorder can achieve. The XA25, XA35, etc are really good, handy to use, and have superb stabilization. However they simply cannot produce the beautiful shots in a low light wedding reception like a DSLR with a pro f/2.8 lens.
When the DSLR video revolution began in 2008, there was no other large sensor option, short of a cinema camera. Now there are large-sensor camcorders starting with the Sony VG-30 and Panasonic AG-DVX200. However these are still more expensive than a DSLR.
DSLRs often require more add-ons to use effectively. E.g, we use the Zacuto EVF Pro which provides focus aids, and a 3rd contact point to stabilize the camera (besides your left and right hands):
http://store.zacuto.com/z-finder-evf-pro/
However it is a hassle to strap on EVF, shotgun mic, possible external audio recorder, etc. A camcorder can be pulled from the case and shooting within seconds.
You don't have to use those, and sometimes I see professionals shooting unaided DSLR video. E.g, ABC interview in front of the White House shot with three DSLRs (two having no aids):
https://joema.smugmug.com/Photography/ABC-News-Using-DSLRs/n-BsScJC/
There is a difference in suitability between run-and-gun field documentary shooting, wedding/events and scripted narratives. With run-and-gun, you must be able to rapidly set up, use and break down the camera.
DSLRs are much more complex to run: in general you must use manual focus, manual exposure, shutter speed must be locked at 2x the frame rate (IOW 1/60th for 30 frames/sec). This is due to the 180 degree shutter rule:
http://cameradojo.com/2014/03/28/why-shutter-speed-matters-with-dslr-video/
This means for outdoor wide-aperture shots you must use a neutral density filter -- either fixed or variable. That in turn usually conflicts with a lens hood. So one complexity stacks on another one.
It is essentially mandatory to use optically stabilized lenses with DSLRs, else you can't do hand held shots. Even then the stabilization is not smooth like a small-sensor camcorder.
In your price range you could consider the GH4, but you'd need some lenses. Panasonic makes the 35-100 f/2.8 which is similar to a 70-200 f/2.8 on a full frame DSLR, and the 12-35 f/2.8 is similar to a 24-70 f/2.8 on FF. It's a good camera but it's micro 4/3 so not equal to a full frame DSLR in terms of shallow DOF and low light ability.
A newer option is the Sony A6300 which has a great sensor and can shoot 4k. It doesn't have sensor-based stabilization, so all your lenses would require optical stabilization. It is APS-C so f/2.8 lenses will be larger and more expensive than micro 4/3.
An even cheaper option is use an entry-level APS-C DSLR and spend the remaining money on a good lens. A Canon or Nikon DSLR with a 17-55 f/2.8 lens. I don't think the Canon and Nikon lenses are stabilized, but I think Sigma or Tamron make a similar one which is. I have never used those so you'd have to evaluate it for overall (and especially video) suitability.
A skilled videographer can shoot better material with a small sensor camcorder than a less skilled one with a full frame DSLR, but we are emphasizing the camera in this discussion.