Hi, Rob;
My 500D/T1i does have a video capability, and I've used it exactly once. We were walking along in Key West while on vacation, and there was a chicken and some chicks beside the sidewalk. I took a couple of pictures, and took a
quick video. Let me know if the link doesn't work: it's my first try at a "guest pass" in flickr. I think you do have to have a flickr account to use it.
The video doesn't show the chicken much: by the time I pulled the camera out, it was pretty buried. I don't know why I saved it. This is why the video on a P&S may make more sense, since it's quicker to pull out of a pocket.