Credit:
Well, that's no longer true; a new app called the Precorder lets users record 480 x 320-pixel video, at 30fps, with sound.
The formats supported are AAC, AMRNB, and MP3 for audio as well as MPEG-4, H.263, and H.264/AVC for video, but unfortunately the app is in very early alpha stage, meaning that it doesn't even have preview of the video while you record it. But hey, it works, so if you're not afraid of the alpha tag, and lack of video on the Pre has been a source of pain and anguish for you, jump right on it.