I bought a Sony TG1 just to have a "pocketcam" in my pocket. While it's not as good as an HV30 or even an HF10, it's pretty darn close in decent light. I have yet to capture any footage into FCP but will do that according to directions I saw in a Ken Stone article. My normal camera is an XH A1, and it would be rare that I'd intercut footage from the TG1, but it's good enough so I could, in some cases.
Just to check out the SD mode, I shot some things, and they look surprisingly good. They come out as MPEG2, but so far I haven't been able to get a clip into an FCP timeline and make it look decent without lots of venetian blind effects. I don't have any reason to shoot SD, but just thought I'd try it out. Interestingly, the SD clips play fine on my old iBook G4 but not on the Mini at home.