We've still a place for a dedicated camcorder. This form factor is absolutely necessary for us when shooting hours of vacation video.
This Canon is not appreciably smaller but it's a bit lighter than the old HD camera. It does seem as though it will be a little easier to use than the six-year old Panasonic recorder it's replacing. I hope it does marginally better in low-light conditions. On trips, we've never had good results in dark cathedrals, or with evening, street scenes.
The most important improvement with this camera is its ability to shoot directly in MP4. AVCHD seemed promising back in 2008 as it allowed me to save in Blu-ray format and view through the old Sony Playstation. Now of course, I want everything on YouTube and I'm hoping the more versatile format will make uploading magnitudes easier. The battery is charging at the moment.