The advantage of the HD video cam is that it has a wide angle lens, which not many at this price range have. The XZ1 does not, nor any of the sub-$100 SD (standard def) tiny video cameras.
The HD video cam may not have brilliant video quality and seems prone to flare (if one aims it too high with about 50% sky in the picture, or if the sun is low and strikes it), but it does have a useful LCD screen, comes with the necessary bits for attachment and is 720p.
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