Now that I own one and have done some tests I can help clear up some things.
Quick note on the 960 GoPro as far as it's "HD" capabilities.
It shoots 1280X720, which is HD. (All those football games you watch on Fox HD are 1280X720 also known as 720p) The angle of vision is the same in 720 as 1080 so if you're looking for a good, cheap camera, don't worry about the video coming from the 960. However, it doesn't do the 60 frame speed so slo-mo won't be as good, but if you want to shoot "HD" videos for the web for not a lot of bread, there's no reason not to have this one. Also, no bacpac works with it so it's just a shooter.
The toughest thing to keep straight is that 1080, 960 and 720 are the height of the videos when talking about HD. But when you look at a standard def frame, it's 720 WIDE. so it's super confusing.
GoPro added the extra frame height for the 960 model but it seems like that would be the width and so not "real" HD. This is not the case.
Argue all you want about 1080 vs 720, but on the web, I challenge anyone to really be able to tell. (this is coming from a digital video engineer who makes his living working on quite few TV shows and yes, web shows.)
In the end, the best camera is the one you have and if it's a difference between no camera and the 960, you'll be fine for most uses. That said, the HD2 is pretty amazing for the money but I know there'll be a ton of 960's at a good price this year. I might get one as a second camera for another angle.