You can't have everything in a phone. For such a low-cost device, including features others do not have like an FFC and flash, money had to have been cut somewhere to maintain such a price point.
It's all about compromise and trying to balance cost/profits, quality, features, specifications, etc.
I don't record video often, thus the lack of HD capture isn't as big of a deal to me than say, to someone else.
It might not be the right combination of compromise to reach that price point (the 520 and 630 are different than this) for you, but for many, I think they've got a winner.