So the Nikon is not a professional Sony 3CCD 1/2" 1080P HD cam, but the look of the video images are better, IMO, because of the much larger sensor size, and the lenses available, even despite the fact that it records in (compressed?) AVI format (this will probably change in future DSLRs). I'm talking about the *potential* that DSLRs have for producing videos. We're not there yet, but:
For fun, I can see myself shooting a long or short film with this thing, or a future Full-Frame 5DII that records in 1080P. I'd discard the sound recorded by the camera and use another source/other equipment for sound, do some professional editing, and you've got yourself a pretty nice looking film... or should we call it "video"...
For the amateurs, yes, it's good for shooting shaky videos with terrible sound, but look at what you can achieve with a hybrid DSLR with video mode if you take some time and effort, and have the skills to create something like I described above.
I think/hope Michael is right. This is how it's going to be in just a few months.