"Film makers use clips less than 3 mins, but not for continuous shooting." Was meant to read, that it is unsuitable for continuous shooting for home user, if limited to 3 mins. I did not find mention of this in the review here, so I might look at the camcoderinfo review.
As cheap way (though h264 at vga resolution and such low bot rates are an bit less requiring smaller processor) is the ATI Radeon 2400, 2600 and upcoming new 2900 revision series cards (the present one uses older video processing architecture than the bottom end 2400) cards. They are potentially an cheap way to do h264 (but still get an good processor+memory size to complement) because they have an new driver for download that supports encoding to H264. They also accelerate H264 display. But, how long it will take NLE software to update to take advantage of these things on your cameras format is another thing. But for $50+ it is an cheap way, even if the NLE support does not pan out, you get an 3D card.
I think they should introduce super-mini-dv with h264 intra encoding (like Panasonic uses in professional camera) at 25-50-100mb/s to hard disk, with backup to minidv and DVCPROHD tape. We are seeing 16-32GB cards/sticks now, so good use in pocket cameras is, potentially, only an few years away when the 32GB-64GB cards could come down in price.