Although they're not 'video cameras', the EOS 7D and the 5D Mark II are definitely good options for film. the mark II is pretty much the ultimate mid range camera for both video and photography. It's more expensive than the XA10, which is out of your budget, but idk.
The 'downgrade', I suppose is the 7D at $1700, which is noticeably not as good but noticeably better than many other cameras and camcorders in the same price range.
also, although they are sports-centric and lack a display (there is an attachable display, attachable larger battery and 2-cameras-in-one-housing for 3d if you need) and some of the 'bells and whistles', the cameras at
http://gopro.com/ are amazingly cheap and very good quality, in fact, you could buy quite a few of them for multiple angles and such.
Seriously, they're 250 each.