Doesn't matter whether in lens is better.
All bodies should have IS. IS can remain in lenses too - just turn it off in the body when using in-lens IS.
In-body IS allows stabilisation of lenses that don't have IS including a lot of superb old manual glass. It alows a substantial saving for anyone that wants some form of IS but doesn't want to pay for or can't afford IS lenses. It is also an advantage for connoisseurs using rare glass that is never stabilised.
There's also the fact that in-lens IS makes lenses heavier and reduces optical performance slightly due to the extra glass involved.
In lens IS is great. It isn't going anywhere especially in pro level telephoto lenses.
However, in body IS should be in every camera body. It's more versatile, better value and most importantly, can be turned off. It offers advantages for every user at any level and is v cheap indeed to add.
Simple isn't it.
To get a little more involved:
Consider that when (not if) EVILs finally appear, you WILL be able to see the effect of sensor stabilisation in the VF.
Also, as soon as live-view makes it into all DSLRs, there is no reason you couldn't see the effect of IS on the LCD (if seeing the effect is that vital - which it isn't for me).
There is no reason not to have IS in all bodies. Keep it in the super-teles and high-end mid-long zooms (and anything else) if there's a demand for it.
I saw another thread on the news discussion forum saying that a full benchmarked test comparison of in lens vs in body IS is on the way imminently. Apparently the results are eye opening. Can't wait to see the full details and to decide for myself.
Canon should only be "worried", if they chose a profiteering direction with little regard for the needs/wants of their customers or the value for money of the products they offer. Perhaps Canon hope to keep in lens IS dominant because it makes them more money. However in the real world having BOTH in lens AND in body is truely the best solution. Sad fact is that having it in body means you need it in less lenses and that will cost Canon money. Tough. Canon can either embrace it as an opportunity, add the feature and watch their market share thrive, or pretend that it's rubbish and that we should all pay through the nose and watch customers buy competitors products instead. Again, it's v simple.
Hope to see in body IS from Canon v soon alongside some more nice in-lens IS superteles.
I'd love a 200-500 f4-5.6 L IS (100-400 replacement) and a stabilised small-bodied DSLR with pro AF. Not holding my breath!
repeat in the 1D forums..
Canon appears to be launching a campaign of their IS lenses. I
think they are begining to feel threatened by the in-camera IS
systems being offered by other manufacturers. They are trying to
justify why IS lenses are better than in-camera IS
http://www.usa.canon.com/app/emails/eosmarch07/index.html
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Keep photography wild.