Whats the deal with 'pocket camcorders' ?

As Jerry Seinfield might say, "Whats the deaaal with pocket camcorders?"

Seriously though what is the deal. They are meant to be pulled out and used in hand primarily, but that is when they perform the worst. Take the Sony MHS-PM5 bloggie I got recently for example. It claims to shoot 720p as Well as 1080p.

Really?

Why do they claim those numbers when real world use involves moving the camera. I'm pretty sure its not really that high quality even when holding still. I mean it is close. But c'mon.
It reminds me of the old toshiba rear projection 'HDTV' I had a few years ago. And I use the term HDTV lightly.  Sure it looked pretty good for video games. But you could clearly see the color beams separating at many different points on the screen. So how does that count as 720p (HD)? High Def to me is pretty simple...A VERY CLEAR PICTURE . PERIOD

Don't get me wrong, I only payed $50 for my Sony MHS-PM5 bloggie , so what could I really expect? Well from the specifications they boast I expect much, and $50 is the most I'd ever pay for something that most cell phones are now capable of. Except for my cell phone that is. If I had something like a Motorola Atrix or an Iphone even I would sell the bloggie in a second. Until then I am looking to trade up to a Flip UltraHD as I watched some comparison videos and it seems to outperform the bloggie by a noticeable degree. I also noticed when watching a YouTuber who I knew was using a flip and realized how clear his video was on 480p whereas mine looked Nasty!