There seems to be an abrupt disconnect in the middle of Sony's DVD Handycam line. On one side of the divide is the DCR-DVD305 and its lower-end siblings, with their puny 1-megapixel or lower-res sensors and inferior, plain-old Zeiss lenses. On the other side are the rich relations, starting at the DCR-DVD405, with its 3-megapixel sensor and high-quality Zeiss T* lens, and its even better-equipped brethren. These might seem to be trivial differences, especially in light of the roughly $50 to $75 it takes to span that divide, but they end up making a significant difference in practice.
The DVD305 also appears to be disconnected from the market--in other words, overpriced. For example, it costs as much as the Hitachi DZ-GX3300A, which has a 3-megapixel sensor. And the DVD305 costs more than the Canon DC100, which has a 25X zoom lens compared to the Sony's 12X zoom.
Sony does include some features that the others lack, such as an analog input (for creating DVDs of analog videos), an active accessory shoe for an add-on video light or the bundled surround-sound microphone, Memory Stick Duo Pro support for storing still photos, and built-in Dolby 5.1 surround recording. The last couple of options are pretty much wasted here, though. As you'd guess, the DVD305's photos are low quality. And surround sound is a poor fit for a budget camcorder. Sony might have been better advised to relocate the ill-positioned built-in stereo mic from the front of the camcorder to the top, as well as add some sort of wind filter. In my videos, the sound of the admittedly strong summer breeze occasionally overwhelmed the sound of whatever I was recording.