I think that you missed the point about video. It is not so that you can carry the iPad around and take videos of your vacation, or your kids playing in your backyard on their new swingset. The video cameras are for FaceTime, basically video telephone calls. That is the sole and primary focus. Anything beyond that is incidental.
As for the videos of vacations at the beach, etc. Those are probably uploaded to the iPad through the camera interface accessory. So the iPad gives you a portable iMovie that lets you upload camera still shots, video clips and combine them in the available themes, throw in your favorite music rips and create vacation videos, or archeological dig videos, or whatever, on the fly.