Frozen in Time (and Indecision)

The Hoos and I are trying to decide if we should invest in a video camera. I am using "invest" as a synonym for "buy" but if you have looked at these in the electronics stores lately, you might be confused. Let's forget that cost is a consideration for a moment and evaluate some other arguments for and against the purchase.

1. Pro: We can hardly remember when LP was a few months old, if we had captured some footage on video maybe it would help our memories. Con: We have pictures of LP in the newborn stage. Pictures of me holding her that I look at frequently and I still have a hard time believing she was ever that small.
2. Pro: Baby girl often does really silly things that would be great to show friends and family. Con: These events are usually one time only offerings and rarely occur when a camera is handy.
3. Pro: It would be great to be able to show LP video of herself as a baby when she is older. Con: These are an embarrassment instead of an enticement. My high school year book had a picture of me in a Wonder Woman bathing suit wearing bracelets, a crown and boots with the caption "You will always be our Wonder Woman."
4. Pro: We will be capturing memories in the making for posterity. Con: We will be see busy capturing the memories that we will not be enjoying them. Sort of like when you go on vacation and spend the whole time searching for "the perfect souvenir" for folks back home instead of enjoying the experience.

As of right now we are leaning toward upgrading our digital camera - the one we have was free with the Hoos' LexisNexis points - and forgoing purchasing a camcorder. Our digital camera does capture small snippets of video which should get us by for now. Other experienced parents have an opinion on the subject? Will we regret our decision?