The new 5th generation iPod nano does not have an auto-focus lens. But, just in case it plays some sort of digital focusing game when objects are near (as with the rain drops in my earlier video comparing the iPod nano to the Flip Ultra), I recorded a pair of videos using the two devices again from a different location that insured only distant visible objects.
Based on this pair of video recordings, I feel confident in saying that the iPod nano does not deal with dynamic ranges of lighting as well as the Flip Ultra does. iPod nano videos tend to look severely underexposed in some bright directly sunlight conditions. The Flip Ultra, in contrast, did a good job of adjusting to quickly changing light conditions.
All Things Digital had similar conclusions…
I agree with the “good enough” theory and conclusion that the iPod nano video quality is not as good as many existing video recording products but is “good enough” to satisfy most people.