Before camcorders and computers got together, the camera itself was the primary tool for editing home videos. You can do some limited editing, but take a look at the bundled PC software. That's what you'll want to use. If you're shooting without a tripod and you zoom in, you may get some shaky scenes unless you have stabilization. Most have digital stabilizers, but a few have optical.
Trouble is, after about five minutes of shopping, all digital cameras start to look the same.
Here are a few pointers to help you figure out which one to splurge on. First and foremost, make sure you're comfortable with the camera you choose. It should be light enough to one-hand with ease and small enough to rest neatly in your palm. The controls should make sense to you. Take a look in the viewfinder too, and make sure you can see what's going on to your satisfaction.