This weekend's Boston Sea Rovers showed a film by Jill Heinerth that she filmed in remote Russian underwater caves using an Xacti. She did joke about quality and "graininess" but it was all she could bring due to luggage restrictions.

The excerpts from her film were excellent - mainly because it's more about skill, perspective & presentation than it is about the camera. This was an excellent example of making full use of what you've got & requires more care & skill. & often, the results are better than with a high-end $$$$ that you don't know how to fully use properly

If the xacti is within your budget and is the perfect size then get it The best camera/video is always the one you have handy when you want to shoot.