I present to you the Sanyo Xacti handheld video camera.
What's so special about this handheld video camera? Is it the 6 megapixel camera or the clear video? Perhaps the tape-less SD card used for recording/storage? Or is it the sweet design that makes it super easy to stash in your coat pocket?
For me, the killer feature is that this camera is waterproof. Yup, finally we have a high quality camera that I can haul all around the world, and then jump into the water with and record all the action going on around me.
I got mine from Amazon for $373. They have it in three colors, and it just so happened that this color was $80 cheaper than the white or baby blue ones.
The real only buzzkill on this camera is the proprietary USB cable for downloading your videos and images off of it. I'm always looking to reduce the cables and clutter in my bag, but this camera requires this special cable to work.
Oh well, its worth it. ;-)