For what it is and at such a low price point, the Panasonic HDC-TM40 is a great little camera. Though it's short on features (namely Intelligent Zoom, a touchscreen, and a mic jack), it shoots good quality video and has a very comfortable, compact, and lightweight form factor. Tack on some good battery life and you've got a camera that's ready for on-the-go shooting for extended periods of time.
There are certainly other drawbacks to this camcorder, like the shallow optical zoom and the still shots that look like garbage. But as long as consumers buy the TM40 knowing what to expect -- an affordable, user-friendly camcorder that comes in a small package -- I think they will walk away satisfied with their purchase.
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