I prefer them for some reason, as they can give more stable less jittery image when filming, and they have alsorts of cool features not seen in the smaller handheld ones. Tilting is a lot easier as well :P
For example, http://images04.olx.pt/ui/1/52/22/10255022_1.jpg (same one I have) has a shotgun mic, and a professional TV lens. And as its a VHS recorder, it also works as a portable VCR player as well that can run off batteries :P
Though handycams are better for areas where size is an important factor and for convience, i.e. on theme park rides and the likes
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