I just bought a T1i, and the video on it is really nice. it beats my old Sony Handycam by a LONG shot. plus, it gives me all the options like spot focusing, blurring out, all that stuff without needing to get a super expensive HVX or any camcorder like that, that are up in the $1,000+ range. I actually have a video I can post up on youtube so that you can see its quality if you want. Or else, just go to Youtube and search "T1i test video". there's one that I thought was really good, shows how versatile the camera is:
http://www.youtube.com/watch?v=3GxUwQpjchI. The one negative i've noticed is the T1i's mic picks up the sound of the camera autofocusing. manual focus is better, but you can still hear it. Not a problem for me, as i usually have music over it.