To be honest, I went ahead and got an iPhone anyway and although I'd like to have the option to record video, I'm far from disappointed with the phone.
Like you say there are ways to get around it but you have to 'jailbreak' your phone, I don't know a lot about this and probably won't do so just because of that, I wouldn't want to end up rendering my phone useless somehow.
The only thing I think is a bit silly about all this is, Apple include youtube as one of the defaults apps, surely this a video recording go hand in hand? Being able to record a video and then upload it directly to Youtube would be a great feature.