Anon.
We have the model before that one. I think the only change is to low light filming. Find the film quality exceptional.
The question about digital is basically what would you use it for. As I see it there is a better transfer when you use the I-Link digital interface but the other transfer modes are analog. I use a capture card for video capture from the S-Video connector (but that is analog anyway so you dont need digital for transfer to the computer).
There is also a certain amount of editing you can do to the film afterwards.
The digital zoom is also quite good but you sure need a steady hand for it to do justice.
Hope that actually clarifies things.
Stick