Also is anyone submitting footage from the video capable dslr's? Thanks

Yes, it works.

BUT

I have no clue how many buyers I've lost because of the substandard quality... I'll never know.

Those cameras are photo cameras not video cameras. They have their limitations. If you know how to work well within those limits, go for it! But don't get frustrated when camera pans or zooms are annoying . out of you (also the infamous rolling shutter issue) 

You can do lots of stock footage just with a tripod.

Forget the Full HD on the 500D due to the 20fps. So you will have to "deal" with the lower commissions for 720p resolution (not with Pond5 of course, since you set the price yourself).

Keep in mind that the promotional footage of those cameras (I think Reverie) were made under tremendous efforts when it came to lighting and perspective. The footage you're going to take at the closest intersection might not look same...

It's a good start with footage. You will learn industry specific issues by using your photo camera. So you are not really "losing" anything if the footage thing doesn't work out. Good luck!

Thanks. Maybe the better question is, what is an affordable video cam suitable for stock footage. The obvious nice aspect of the Nikon, or Canon DSLR is the shallow depth of field, but if i'm buying something primarily for video then perhaps I shouldn't consider a dslr. Is there a favorite affordable video cam (under $1000) among the micro stock crowd?

Yes, there is. Again, you will get limited features for that budget but you can get something for just under $1000. Take the camera in your hand and test it to see what you feel comfortable with.

A couple of things come together. Good video equipment comes expensive. It's not just the camera, it's the lenses, tripod etc. You can easily pay $5000 for a tripod that delivers Hollywood style pans no matter what camera you use - just to get the nice fluid movement.

DOF is definitely a great feature of the DSLR that you won't get with a <$1000  video camera (probably - I'm not tooooo fmailiar with that, please correct me if I'm wrong).

It's a tough decision. Check out the cameras and compare, it will give you hands-on experience of what they deliver.

Dang, I forgot something. Don't forget the fact, that the DSLRs have their "built in" compression. You don't have control over the bit-rate that they are recording at least the D90 doesn't.

With camcorders that record onto hard disk, memory stick or DVD be careful what your options are. If you go with tape you can enjoy the full plethora of information recorded. Then it's up to you how badly you compress it 

Thanks. Maybe the better question is, what is an affordable video cam suitable for stock footage.

The Canon HV30? If you want pans, zooms and travelings, the equipment will be a multiple of that price.