It's worth noting that the recorder could record up to 640x480 (and iTMS has no such option), so I'd argue it's a better choice for watching on the PC (even forgetting cost), but it's a fair review overall, I'd say.
http://www.oreillynet.com/mac/blog/2006/04/the_bang_for_my_buckninetynine_1.html
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Analog copies
Well, any time you go through an analog stage (esp composite CVBS) you're going to get loss of saturation, jaggies, crawlies, etc. Presumably, the iTMS videos were digital conversions from the original cell or computer animations.
A basic analog video stabilizer will buffer the signal and help clean up noise. You should use one any time you are converting, capturing or copying analog video signals.
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