What drew me to this camera was the HD resolution for videos. If it wasn't for that, I would have looked at others that are slightly smaller. I had a Canon SD800 that I was replacing that was thicker but smaller. I also have a Sony FX1 camcorder. After a month of use I have the following observations. The HD resolution from such a small camera is nothing short of amazing. I never want to go back to 320x240 or even 640x480 videos again. Although it will NEVER compare to a dedicated HD camcorder or my FX1, it's great to have this option in my pocket. I carry the T500 with me everywhere and it's better to take a picture than not at all - nobody wants to carry a video camera with them everywhere. Low light ability is the best of all. There is some graininess in very low light, but you can't even get a comparison image with my Canon. I personally prefer real button controls. The touchscreen is pleasant at first, but accessing submenus takes some getting used to and often requires tapping icons for things to appear. The touchscreen is finicky at times - or maybe lags behind. The extra large LCD is very good, but be sure to buy a screen protector BEFORE you buy the camera. I left a permanent stain on the screen within 1 hour of receiving it. I thought I was being careful but now I can't remove the stain. The battery life is terrible. While the Canon can probably last 2-3 weeks with occasional use, I do need to charge it every few days. 450 photos/videos in a month and I think I had to charge it at least 8 times. This is with mixed photography and video playback - similar to what I did with the Canon. Be sure to take a few extra batteries with you when you travel. I bought a SanDisk Extreme III HG Duo 8GB flash drive and it was definitely worth it. I have used the Extreme II with Canon in the past and the significant increase in transfer speed is welcome when transferring really large videos from the T500. I don't have details but it feels like the speed is almost doubled. The ability to use zoom (optical) when recording video is a huge plus. With Canon, my videos are distorted. I have a full 5x zoom which is great for a camera this size. Because the lens position is fixed (Sony has their optics in the camera) it's a lot smaller. You don't have to worry about the lens popping up and popping out. The optical stabilizer works, but only to a limited extent. I feel Canon has better stabilization as my videos are still a bit shaky. In general, the photo quality is quite good. I like the Canon's image quality in good light, but in a combination of low and good light, the Sony is much better. I do not regret the purchase and not the new Canon. By the way, I also bought a Sony T77 with this camera (I'm a camera enthusiast). T77 has the same quality but no HD. However, it is significantly smaller and slightly lighter than the T500.
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