I'll tell you one more thing that was a very positive surprise for me when it comes to the Olympus DS-40.
If you remove the stereo microphone from the Olympus DS-40, it reveals the presence of a MONO microphone. And -- trust me -- this little MONO microphone ROCKS.
I set my Olympus DS-40 to "STXQ" (highest) quality mode and the sound is terrific.
Why can't the hybrid camcorder manufacturers purchase circuitry similar to this and just incorporate it into the hybrid body with the corresponding external microphone input and the earphone jack for real-time monitoring?
But -- yes -- the Olympus DS-40 is an incredible tool for budget videographers who want top-quality sound.