I received this two days ago and was really unsure about the T1i. I've read what scant reviews existed on Amazon and became somewhat concerned about the complaints of soft images. In the brief time I tested it I noticed my shots were coming out soft as well compared to my S3. Then after toying around with the settings I found that the "Standard" profile's sharpness was set on low. Not having dug that deep into the menu system, I believe it was the default setting making the images really soft. I now have it on max, or near max, and am more satisfied with the images. While increasing sharpness, images remain really smooth even at high ISOs. Overall, I'm more satisfied with the unit now that I've got the image sharpening down. With that said I still have more deliberating to do.
A note about video: I do enjoy having the video capability on the camera only because you can set the WB, unlike a Flip. I can't squeeze 1080 out of my system anyway so 720 works just fine. As others have pointed out, the autofocus is a bit odd to get used to but manageable in video. You're better off shooting fixed distances. Noise is loud during focus, but if you're putting together a clip most likely you'll overlap it with an audio track instead.