The Zi8 is one of the best pocket camcorders around, but maybe the biggest. The Playsport takes the Zi8's guts—including its 1080p video, 5MP still photo sensor—and crams them into a small, waterproof shell. And? It's cheaper.
Techcrunch is reporting, via "sources in Asia," that Apple is gobbling up huge numbers of camera sensors—the same ones used in the iPhone 3GS—for use in iPods. If Apple isn't really doing this, they should be.