That really is an incredibly strange decision on Apple's behalf to not allow 720p video recording on the 4S.
Have to say I'm massively underwhelmed by the update:
Reminders - The location based reminders are a nice touch but there are much better apps out there. Still pretty neat.
Newstand - meh, iBooks for magazines. And I never used iBooks personally, screen is far too small.
Photo - some nice additions but so basic it's unreal. Crop, remove red-eye and enhance. That's it?
Camera - For some reason I thought this was really optimised, but instead it just has a grid feature, can't see any other changes.
Safari, messaging, mail... practically everything else is identical to iOS 4.
iCloud - It's a good idea, but everyone seems to be having big problems with it, so I chose just to backup to my PC (really no hardship) instead
Just feel a bit let down to be honest. iOS bought a lot of great features to the table, particularly multitasking... but after watching the original iPhone's launch the other day (not sure why, just some Steve Jobs thing) it really is quite shocking how little this phone has come in the last 4/5 years.