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Lord knows I've seen my share of crappy real estate video.
I have a Canon HG-10 camera, and it shoots in HD. I recently made the decision to switch all of my video blogging hosting over to blip.tv just so that I could take advantage of the HD capability. Stuff looks much better, and as you mentioned, bandwith and file-size issues will get better over time.
I'm glad you enjoy using Vimeo to host your personal videos.
1) A vast majority of end users are not ready for HD. Two of the major culprits are connection speeds, and processing power at the end user level. Display mechanisms are lagging as well, so HD doesn't necessarily look exactly like HD.
2) Unless something has changed in the last couple weeks, you cannot embed H264 (which is the format being used to claim "HD") files into an SWF player. In more simple terms, you can't embed HD quality videos onto a different web page yet.
HD is happening...no doubt...but don't trample your brethren to get into it.
I have cox cable and have been able to watch any HD videos on the web. 1080p is a little slower i must say, but anything lower i can handle. plus i have a nice machine to view on:)
I forgot to mention that real estate video tours will almost surely be yanked down from BlipTV. Sounds like you are on track by sticking to blog-like content, but wanted to save you the hassle if possible.
Sterner, I'm throwing down the gauntlet.
My bet is that-if you are a loyal reader of Joel's blog-you are not the average computer/tech user. Upload speeds, no matter what type of service (cable, dsl, dial-up etc) are slower. But CDN(s) can only do so much in terms of alleviating the pain of download speeds: they still have to rely on cable companies. My point is this: you probably have a pretty great computer that can process large files quickly. Most people do not. On top of this, we've observed some pretty heavy testing with HD files with large samples of internet users who complain that videos are "jumpy" or "stall" or "they can't even bare to watch them." They were all broadband users. For the masses, HD is unfortunately not there. That is not to say that it is unexciting in any way.
Joel...you are always there to kick us in the ass when we need it. You know we don't miss parties and HD is going to be a rager!