I bought a Sony 403 and returned it, then regretted returning it, and purchased it again. Yes, it may be more difficult to transfer and edit the videos to a computer, but I have a Sony laptop and have no problems - I am not even using the Picturegear software (pretty useless except for capturing and downloading). I am using InterVideo's WinDVD. I know that compatibility with other Video editing programs can be a problem, so people who are interested in a lot of editing or who are used to software that may be incompatible may have to figure out a get-around or look for a different camcorder.
I bought it again because the video quality is good, the colors and sharpness excellent, the still camera resolution one of the highest available in a camcorder; and it is particularly easy and convenient to view in the camcorder or a DVD-player - much easier than a DVtape, since you don't have to wind or rewind a tape to find a particular spot. The mini-DVDs are getting cheaper (just bought a pack of 12 for $15, each one holding 1.4GB), and there is always the reusable miniDVD-RW.
I have owned a Sony Mavica CD camera for three years, taken thousands of pictures with it travelling to Europe, formatted and finalized it under sandy, bumpy conditions - and never had the slightest problem. I have recommended that camera to several friends, and no one has had any problems with the CD mechanism.