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I guess it's all relative since the next decent option is probably the Canon HF200/WP-V1 package at just around $1000.Actually, its an example of what you can do with a Flip, a housing, a color filter, a light, a light arm and a wide angle lens. The lens alone is a $300 item. If that is what it takes to create an ok video with a Flip than I would say there are a lot of hidden costs.
Isn't the filter included with the housing?