A while back I tried the Zoom H2 and felt is was way overkill for what my needs were. When the first H1 came out, I tried it at the store and felt it was sluggish and was missing the usb mic feature. Then later last year there was an 2.0 update for the H1. After watching quite a few Youtube videos of people update the software on the Zoom H1 it showed improvement on H1 boot up and now offering USB mic feature. The one key complaint that people had Zoom H1 was the cheap plastic feel versus the competitors.
*Great Quality recording
*Lite and small(Great for DSLR recording and interviews)
*Easy to use
*Can be used as usb mic
*External Line in/Mic
*External Line out/Headphones
*Plastic casing, battery door (wishing the threading for tripod would have been metal)
*Buttons on the side kinda small(people with bigger finger might have some issues)
Over all after the 2.0 improvements and the exception of the cheap plastic casing I really love the Zoom H1. The simplicity, ease of use and recording quality is what makes the Zoom H1 works for me. Now the Zoom H1 one is not everyone it really comes down what your recording needs are. For someone that need a recording device that is small, light weight, mountable to DSLR and quick on the run the Zoom H1 seems to be perfect for that.