OK, guys, I stand corrected on the issue of why someone would want video capabilities in their digital still camera!
FWIW, when we got a dP&S a few years ago, we were delighted to have the 'video' setting, but not necessarily to shoot videos - - it was because it also recorded
sound.
Way back in 1999 (egads, its been that long already!), my wife & I went on a dayhiking tour in Switzerland, and one of the very memorable things that happened on that trip was the two of us quietly riding in a gondola up a mountainside in the early morning.
As we crested over a small ridge, we heard the sound of a small waterfall and the "clang-klangity-clang-bong" of swiss cowbells from a small group of bovines that we were passing over.
Afterwords, we talked about how it would be nice to have some sort of recording device that allowed us to capture "Sound Bites" like this, in addition to photo's.
This is what we use the Video mode for today. I found that between iMovie and iTunes, I can take the videoclip and then strip off the image to be left with just an MP3 soundtrack. Its not perfect, but it is convenient.
-hh