When I read about people reccomending using an SD camera of any type for indie film-making, or as "being the camera of choice" for that purpose. I wonder if they have ever seen SD footage blown up to a 40' (or even a 12') screen, and compared it with similar HD or 35mm footage. The difference is night and day, and very plain for anyone with reasonably good eyesight to see. 720*480 pixels is just not enough to provide anywhere close to the image detail that we are used to seeing on a large screen projected 35mm film. It may look great on a 20" television set, but blow it up and you see that faces lack detail (unless in close-up), edges are blurry, and pixelation is very evident, just to name a few of the vey obvious problems. If this is acceptable to you as a film-maker, then I just hope that your script is so rivetting, and the acting so compelling that your audience will be blind to the obvious lack of visual quality that you have chosen to offer them to save money. If you really believe in your film, or even care even a tad for the quality of what you will ask an audience to pay to see, you will do the comparisons and somehow find a way to come up with the money to rent an HD camera or (if you're really lucky) film on 35mm, it probably won't be the largest expense on the film.
The XL2 is an SD camera, and probably quite a good one. SD can look very nice on small TV screens, but please don't try to pretend that SD can look like HD or 35mm when projected in a theater.