In reply to Noam Osband's post on Tue 27 Apr 2010 :
I was skeptical of the 12 minute limit too, but it's proven to be less of a practical concern than I anticipated. There is a long history (and workflows) for dealing with those types of issues ... super-8 and 16 both had carts with similar constraints. You are doing yourself a disservice ruling out the platform for that reason alone. Also, the Panasonic GH1 does not suffer from the exact same issue.
I don't know of anything that meets your criteria. Any camera in that price range, even if it has XLR in, is going to make audio sacrifices. You're better off with an external recorder and sync sound, using the camera for dual-system to make the sync easier in post.
Don't rule out a flip video camera either. If you spend the next two years indoctrinating yourself to bring the camera everywhere and to use it always and focusing on your technique, you'll get a lot more for a lot less – and you'll know exactly what you want/need when the time comes to buy the full setup. It's less about the gear and more about the mindset and "eye" than you might think.