Sorry, I've got to disagree. I guess it's all relative. If you have a decent camcorder and compare it with a camera using motion jpeg or mpeg4, it's a huge difference in quality. I can take a 4 megapixel image with my camcorder - but I don't.
I advised Mpegnut to get a camcorder because he or she has a child. If the only video of that child is going to be with a camera, I think he or she is really going to regret it down the road.
Mpegnut - Getting 640x480 high quality video that is compressed to 10-15 megs on a 10 minute recording is impossible as far as I know. Even 320x240 compressed to about 5megs will only give you 3 minutes of recording time at medium quality - nevermind high quality. Also, remember mpeg2 and 4 are already compressed formats to begin with. They are delivery formats - not ones that were meant to be edited further.