Paul, as one who has a little boy... 90% of our video clips are from iPhones, simply because they're almost immediately at hand and fit pockets and handbags.
I did use a couple of compacts (LX3 and LX5) of many years and in comparison the iPhone 6/6+/7 all shoot better quality video than the compacts ever did.
I now have a Panasonic GX85 which shoots really gorgeous 4K video. Add optical zoom, which iPhones don't have.
But it remains a matter of convenience winning out, over the inconvenience of a larger camera.
If you've used any recent M4/3 or DSLR capable of 4K video you'll realise camcorders belong on the scrapheap. Very firmly.
But I do agree on the issue of ergonomics. It is remarkable IMHO that here we are 20 years after the death of film, and digital cameras are still clinging to a form-factor that was driven by the need to hold a canister of film, and a take-up spool to hold the used film. History also shows cameras departing from that form factor will die rather quickly despite their technical merits.
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