No offense, but it would be rather ignorant to think the iPhone is a full fledged video camera. It's not even going to compare to a real video camera. So don't buy an iPhone 3GS just so you have a "good" video camera. That's not going to happen. The video is good enough for youtube and the internet, but it's far from broadcast quality and it's not really anything you'd want to watch on the TV to share family memories with others.
Originally Posted by i_nut
But really, how IS the iPhone 3GS's video camera? Well, it kicks the nuts off of any other cellphone video camera, and I consider it a good secondary video device that you can keep with you at all times. It's good for taking video of that awesome car crash or your fighting neighbors, and other random goodness that comes when you've got a video recorder in your pocket.
Bottom line. Don't buy the iPhone for as a video camera. Buy it because it's the best cell phone and internet device on the market. Oh, and it's got a pretty decent integrated video recording device too.
Oh, and here's a video I shot handheld while driving the other day, just to see how it would do. This video was directly uploaded from my phone.