A year and half I looked into it and Canon and Sony were the ones to get for when my son was born. In the less expensive models, Sony had better night recording Canon better overall. I chose miniDV ones because I don't trust the optical recording ones to be rugged enough for a family. Also, going somewhere and actually picking one up and holding it with the wife helped to see if it was comfortable and wasn't a PITA for the both of us. (Have to make sure the wife can operate it)
You are in the range where (at the time, going from memory) you can get one of the three chip models which is a bit higher end then the lower ones, like the Canon Eluora series. These models had more functions, better at night, etc.
So, I'd still suggest either the lower models and have some cash or the Canon Eluora series. I had a bit lower of a budget and got the lower Canon ZR series and the night stuff hasn't been an issue.
I highly suggest a tripod. They seem expensive, but I picked up a really nice one online(bhphoto.com I think) for like $40 with shipping that folds up small and is really lite and portable and have used it a lot. It's easy to take the camcorder on and off and came with another quick release that I use for my camera. I picked up some other accesories from there as well.