Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
I would imagine that more HD content will be available when they provide us with the means to have larger Hard Disks. Until then we could only fit about two movies. If the average ignorance is bliss user tries to download their third movie and finds that they don’t have the space available then that same user would spread the word and the reputation of the Video Marketplace would fall. It was probably done intentionally in the order of content first, then peripheral so all of the users would have a reason to buy a larger HDD. If a larger HDD would have been released six months ago, would you have bought one?