Downconverting to SD can be done in-camera from an HDV model,
xl2s performance is not miles ahead (if that) of the SD performance from similarly rated HDV models IMHO
and
The "Pros" seem to use
all these cameras , including the xl2
Have you tried hiring them for use for comparison?
I'm a bit more of the opinion that you might find your technique and creativity as well as PP skills just as ( sometimes even more) important than the camcorder you use. But I guess you've probably also seen stills from a Nikon D80 or Even D50 not looking out of place next to those from the D2x
I was at the Video Forum in Earls Court early in the year and chatted with a few Videographers . The FX1 for all its "prosumer" moniker is well regarded in that group alongside the likes of the (older) VX2100 , DV cam models and even "baby" HDV models like the FX7
Something smaller may have a few bits and bobs less but youll still be able to get great quality video, It is only you who can determine if you can live without those "bits and bobs"
Good luck whatever you eventually get