Cons: Limited color space, reduced resolution if shooting 16:9 (XL2 is native 16:9), poor manual controls with the stock lens, no true progressive mode (just simulated), no built-in LCD monitor (just the viewfinder)
Pros: interchangeable lenses (even taking professional lenses with the right adapters), good clarity compared to consumer camcorders, looks cool on set, plenty of aftermarket accessories since they've been around awhile
Do you already have the camera? Get the XL1s if you're set on the XL1. If I had it to do over, I'd have saved more and gone straight to the XL2.
You can limit your depth of field by using ND filters.