Currently it is useless, can only record 720p videos and even then the bit rate is only 3Mbps, just looks worse than a video at 480p, there is no other way of getting your videos off the system other than Skydrive, which ruins the quality even more some how. You have to get your videos off there as the upload studio is crap, only allows you to edit up to 5 mins of video, you can only record 5 mins at a time as it is... not even enough for a single race on Forza 5!
I can only hope now we will be able to record at 1080p, up the bit rate to 50Mbps and take it straight from the drive without the need of an Xbox Live gold sub and edit it on our PCs.
Why the hell did they stick a shoddy 2.5 Laptop drive in the console? Could have put a 3.5 7200rpm HDD that is three times faster in there, could have fit two in there with the amount of space there is inside the console.