Very fair and thorough review - I agree that the whole video compression thing is odd and there are still a few kinks to work out with the video transmission system.
I think $200 is a bit pricey for a non-HD platform, though the FPV is a big game changer. For those just interested in starting out a bit cheaper, the regular non-streaming video version of the Hubsan X4 - the Hubsan X4 H107C can be found for about $60 and is a great first quadcopter purchase.

The best compromise would be to have the live low rez video feed, but also have it recorded on the copter at higher rez without glitches.

A really good review. I can hardly wait to buy one.
Maybe one can hack a wide angle lens onto the QC. On board SD card would be great. I want the camera to document things from altitude. Add some stabilization algorithms and sensors.

Augmentations: Station-keeping software so one does not have to fly it every second, and the video does not jump around so much, a bottom mounted battery and a hot-swap station for 'refueling'. Swarming and nest building capability. Sting optional. :)

It amazes me that the on-board battery charging is not done via a suitable battery or power supply with a tethered power wire and a tiny plug at the 'copter itself, seems to me that the present system is ass-about! I await the 'next-gen' version with GPS and a better charging option.

Lengthen the distance covered, and it will be an indispensable gadget of every paparazzo.

Aaaagh! The lens flares! Are you sure this clip wasn't directed by JJ Abrams?
☺

I think this is a fairly good-value toy. However, I'd buy it from a reputable vendor. If you are thinking of buying from a particular vendor, possibly one whose business practices you're not familiar with, please google
"reviews for "
before you send them any money.
I am just getting out from under a very negative experience with what seems like a completely insane (takes money but refuses to ship, offering only excuses) vendor. I will be checking for reviews of new sellers FIRST before buying things like this online from now on.
There seem to be a few sketchy vendors selling these, along with very strong ones like Amazon and various eBay stores.
To Hubsan's credit, each and every part that makes the toy can be bought as a spare. Three stars for that!

The Hubsan X4 without the FPV has to be the best quadcopter I have flown apart from the DJI Phantom with GPS. In expert mode you can fight the wind very easily, Although it will take a lot of practice to master this small machine it is very responsive to the joystick, others are slow and delayed (eg: syma x1) which make flying not fun at all. Anyone wanting to start out with the hubsan I would suggest you buy the Hubsan X4 107 from ebay or the cheapest is from banggood for around AU$35 - AU$45. There is an updated model with LEDS the Hubsan X4 V2 H107L that makes night flying fun and finding it when it crashes as well, oh and yes DO buy the prop guard and 5 extra batteries..you will need both. Expect 9 mins of flying time but well worth it..lots of fun.

The video range is a lot better with a simple mod from the cali-bros.com http://cali-bros.com/h107d-antenna-mod-longer-range-fix-cali-bros/
This will easily double the fpv range.