SLT-A57 or DSC-RX100 or Camcorder for video

Im a newbie.  Be kind !  I recently bought a Sony SLT-A57 thinking id be able to capture some nice video of my kids dancing etc and also use it as a still camera.  Im new to photography and havent really focussed on details/manual-controls etc, though they tell me i have a really good eye for framing pictures (art class hangover!).

Anyways i took some video of my daughter dancing on stage with the kit lens (18-55) that came with it and im not impressed at all.  Maybe i should have bought a camcorder but the still pics on this camera are amazing.  I dont wanna spend too much money on this stuff, i know you can go crazy judging by the gear people seem to invest in on the board, im just not that committed as yet.

So here is my question.  Should i sell the SLT-A57 and buy a camcorder or the new RX100 compact since i dont seem to be getting that much of a benefit for the bulk im carrying around with the SLT-A57  OR  should i invest in a better lens and stick with the bulky DSLR+Lens set up thats frankly quite annoying ?  Ideally id like to have a really good camera that takes excellent quality pics without messing around with settings (you can flame me ... photography is not my life though i love it) and also has the capacity to take excellent video, without being too bulky or expensive !!