Sony DCR-SR200, is this the right one for me?

Hey everyone, I am planning on purchasing a camcorder. I love the idea of the hard drive camcorders. The main motivation for me getting the camera is the fact that my wife is pregnant with our first child.
After some research it seems like the Sony DCR-SR200 is a good value for the $. Unfortunately, I really do not know a lot about camcorders so I wanted to pass it by the forum just to make sure I have picked the best model for my needs/concerns.

Considering the following, would you buy this or something else:
1. Main use will be for family recording. Indoor/outdoor
2. I really like the idea of the Hard Drive
3. $$, I dont want to spend more than $700 for the camcorder (considerinng all the other acc. that are needed)
4. Occasional still shots
5. I like the idea of Sony because my digi cam is also Sony, but I am not married to the brand.

My concerns about buying this:
1. I have missed something that is important in my research
2. HD, will I want an HD camcorder in the next year? Is HD worth it?
3. Would spending a little more money get me a lot more performance.

Thanks for the help
-Dale