Camorders as still image takers are a mixed bag.. Good for spontaneous moments. not that good as the primary camera
Formats:
DVD camcorders , I would avoid at any rate

HDD or SD camcorders for your budget exist but most are underwhelming
MiniDV tape for the money The Panasonic GS330 Canon 235 are both decent performers if you can stand the thought of tape
What I say when people say their camcorder is for casual use, is that c**p video will mean you watch the videos once and never again. as time goes on the camcorder will stay on a shelf and gather dust

We become used to BBC or Sky images and tend to use them as an unconscious basis for comparison and then wonder why our kit is so less capable
Poor low light with noise smearing, dull colours ( or oversaturated ones) with dodgy auto focus and poor audio do not make for nice viewing of even casual use
If you want to get a better performing HDD or SD card Standard definition model .. up your budget a bit
Otherwise You are in decent budget MiniDv tape territory ATM