A cute toy, but like all those Chinese, low-end, solid-media camcorders, this tells the whole story:

"DVD quality video with resolution up to 720×480 at 30fps. MPEG4 Video Format."

DVD quality is not 30 Frames-per-second MPEG4, it's 60 fields-per-second MPEG2.  While real-time MPEG4 certainly has the potential to be as good or even better than MPEG2 given enough processing power, it's just not available in a small, inexpensive, battery-powered device.  You can bet the lower motion update rate and MPEG4 macroblocking will not compare even to the venerable SV-AV100.