When I say the Canon FS200 is a success, it should be interpreted as "the video's not perfect, but the results are pretty good all things considered and the rest of it is a great package."
After all, there are cell phones and cheap pocket cameras with higher resolutions than your average SD camcorder. Also, video quality is very much in the eye of the viewer, so even defects in low-quality movies can be overlooked depending on who's watching what.
That being said, about the only major issue with the specs and design of the FS200 is its lack of optical image stabilization on a 37x zoom lens. Otherwise it's an excellent ultracompact build that includes, a couple nice shooting features, a headphone output and a mic input, and is relatively simple to use.