Got to this thread to late. We have the Canon XH-A1 and it is the sweetest camera I've ever seen. In my opinion there isn't a better HDV cam on the market. Far less body noise than it's Sony counterparts too. Though an external mic plugged into the built in XLR ports is the best way to go anyway. The sound is ok, but like any onboard mic, that's weak link. (Still way better than the FX-1)
If you want anything more than that then the Panny is about the only thing better.
Here is a great article comparing the 2 cams. Keep in mind the Panny is actually in a higher league than the Canon. But the fact it even stacks up speaks volumes about it.
http://www.dvxuser.com/articles/xha1/
Have you looked at the Canon HV-20? It's a small handheld version, single chip, but still has tone of features and can shoot 24P. We were thinking of this as our secondary travel cam. (Opinions welcome.)