How much better is the Canon FS100 than my S3 IS?

I am a digital camcorder newbie and am trying to find a decent standard def camcorder in the $200-$300 price range. I prefer flash memory, but have heard that miniDV tapes can offer better video with less compression. If that's true to a noticeable degree I may decide to go with mini DV.

Currently I use an old JVC GR-AXM710 (movies have to be converted to digital through Pinnacle Studio 11) or, more frequently, the movie mode on my Canon S3 IS. I like the flexibility of the SD cards my S3 uses and the video quality is pretty good for a still camera.

I noticed the resolution of the FS100 is pretty good for a low end SD camcorder, but is it significantly better than my S3? What other factors contribute to the video image quality? I would gues optical image stabilization would help, but most low end camcorders only gave digital. I want to keep it cheap because I'll upgrade to an HD when they become cheaper in a few years.

I'm also open to other brands, but would prefer to stay away from Sonys that use flash memory (the pricey memory sticks annoy me).

Thanks.