The Most Over-Hyped Features
Technically, HD video recording refers only to the number of pixels recorded. If your phone records 1280 by 720 videos, you get 720p HD recording. If your phone can manage 1920 by 1080 pixels, congratulations, you're recording in Full HD. But does it look good? For most devices, the answer is a definite no.
I wish the phone market would learn what the camera market figured out a while back. The megapixel war isn't making anyone happier. If you make hardware that takes horrible pictures at 11-megapixels, your gear won't take better pictures at 14-megapixels. In fact, your pictures might look worse.
What makes a photo look good isn't the number of pixels. It's the size of the pixels themselves. So, you don't necessarily want more pixels; in fact, it's better to have fewer pixels on a larger sensor. If the sensor size is the same, I would take a 5-megapixel cameraphone over an 8-megapixel (or even 12-megapixel) cameraphone any day.
The camera market stopped counting pixels and started improving other aspects of shooting, especially low-light sensitivity. Some manufacturers, especially Casio, started focusing on high-speed shooting and video recording. It's rare to find a manufacturer break the 14-megapixel barrier for sensors, and you're more likely to find camera makers bragging about ISO sensitivity than pixels.
On phones, HD video recording may indicate a larger video with more pixels, but HD is not a good indicator of quality. The best HD camcorders on smartphones would be considered horrible for a dedicated camcorder (anything better than a cheap Flip HD recorder). Videos might look wonderful on your camera screen, which can't show even half the pixels its shooting, but blown up on a large computer monitor - or, gasp, a large-screen HDTV - you'll think your videos were shot underwater from a sinking ship.
I was disappointed when the Samsung Nexus S shipped with only 480p video recording, especially with rumored 1080p hardware around the corner. But I have never seen a camcorder phone that would make me leave my inexpensive Canon HD camcorder at home. Phone makers need to improve the lens quality and especially the sensor quality before the public should get excited about HD recording on a phone.