Of course the answers to your questions depend on the tasks you want the devices to perform.

I haven't seen any digital cameras that were good at making movies, and I haven't seen any movie cameras that were particularly good at taking still pictures. But these days they all do both, they just do one of the jobs well, and the other job poorly.

If making movies were important to me, I'd buy a movie camera. If making high quality still pictures were important to me, I'd buy a digital still camera. If both were important to me, I'd buy both.

I agree that it's kind of silly that the convergence isn't there yet on those devices. They both have CCDs and imaging software, why can't they do both jobs well? I'm guessing it has something to do with the type of CCDs, there must be important differences between the two other than just resolution.