Relevant details of the design are still missing, such as whether the camera will be used outdoor with the possibility of adding different interchangeable external objective lenses, or whether the application would only be for use in a narrow range close to the object. Others aspects matters as for example illuminating schemes, etc...As for the sensor indicated in the above link, it has a JPEG encoder which is highly lossly compression format and may degrade a little the quality of the video, whose 1 vga do not provide that high resolution. Although its bridge chipset is theoretically able to deal with uncompressed mode, it is unclear whether the product itself supports this mode or not. The H.264 in other hand, although not being entirely without loss of quality, does so selectively in part of the image. Anyway, based on the initial specification where you cited the product 'camcorder', it seems a waste to use a camera that expensive if you want only take snapshots with the ptz function.