The software is eh, but if you know anything about video editing you probably have a way to convert the files into a more manageable format than .mov
The Flip UltraHD is soo much bigger and you have to buy a special case to take it underwater. I bought mine to shoot funny videos and take snorkeling videos on my honeymoon and it works great for both. A word of advice is to try to shoot video for at least 30 seconds when you are shooting because the most trouble I have had with this is with really short videos. I would not recommend using the zoom and given the size and price I think that's understandable.
It is very rugged, waterproof, smaller (think smaller than an iphone but thicker, very similar to ipod classic), has cheap, $5 rechargeable batteries that you can buy on amazon and ITS CHEAPER THAN THE FLIP CAMERAS. Taking 720p @ 60fps and 1080p @ 30fps is just icing on the cake. I would recommend sticking to 720p @ 60fps unless you have it on a tripod and are just taking scenery video.
When you buy a Flip you are paying more for the name and although I bet the software is oodles better it is much bulkier, not as rugged (or waterproof) and more expensive overall. I would rank the Playsport as a 7 out of 10, but a 9 out of 10 if the software was improved dramatically out of the box.
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I have a Kodak Playsport Zx3 and using the camera is awesome.
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