FWIW I use a Sony NEX5, but the NEX3 is about £100 cheaper, DYOR although it doesn't do 1920 x 1080. There is a replacement model with touch-screen (Arrgh, fingermarks), which will be more expensive....
It's a 16Mp (or 14 - anyway it's a lot) and I use it 95% for video. It is only a x3 zoom, but that covers almost everything - and you can "move-in" which will improve the audio - which is fabulous - it's difficult to fault provided you fit a "dead cat" (furry wig, to the top-plate) that makes wind noise all but history. mine came with a separate charger and I bought spare batteries (2hrs) for £10 ea.
However, it lacks some "camcorder" features, but it does have some "Still" tricks that are good - like sweep panorama - you swing the camera and it takes 6-shots then stitches them together... magic! and I don't have to use the computer, which I used to. Another trick is the fold-out display LCD - so you can take pics from over people's heads, very useful if there's a street-display and you can't push-in (really you need a long-handle to gain extra height, or a tall husband). Also by folding the other way you can get down to ground level for kids games....you have to spend a lot more to get that feature elsewhere.
The video quality is stunning, with the right playback and I regularly project mine at video-club to 10ft wide. Mostly they complain I don't make enough "cuts" - a regular gripe amongst v.Editors.
However, I do warn you it lacks many camcorder features.....but it depends what you want. If hubby has any SLR lenses these will fit via an adaptor, in manual mode....I regularly use a (like 70-300) but you need a rock-steady tripod as there is no stab, without the Sony lens.
Specwise that HX DC1 is prob. good enough, but don't expect stunning....Amazon sells under £100, so there isn't much left for the lens, which is 5x zoom - perfectly OK. But many dislike the "pistol-grip" style....try it......by taking in your own SDHC card 16G, class 10. £15 Amazon - that's what I get. Take it into the shop "to see if it works on your home PC" . Put a dab of nail varnish on it for ownership, just in case. Beware of paying too little, many store on-line are overseas - and folk here regularly complain about delays, poor service etc. Trading via Amazon give you some peace of mind - pay no less than the middle price, I'd say.
BTW I had many years of stills experience, so vid was mostly a matter of learning a new craft...still doing it, but at least I have a very adaptable camera. The stills are very good and it has a "defocus background" routine that makes your subject stand-out, like a £1k DSLR. If hubby is techy, he'll love the challenges.