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@origamist
The HD Hero 2 has better quality HD recording (it's markedly better in low light situations than the original HD Hero). However, it's still quite a lot more than the original HD Hero and if cost is an issue, the earlier model is still fine for commuting duties.
If you want a GoPro without the 1080p option there is the Hero 960 - but I don't have any experience with this model.