Unfortunately a lot of people are snobbish about shooting on video. And while it is true that film DOES look better, it's also a lot more hard work and money. The schism is that professional projects or anything worth seeing are shot on film, whereas cheap DIY projects are shot on video and unfortunately the disparity between the two seems to convince people of inherent quality. It's something we've all been indoctrinated with (higher cost = better quality), but it's not necessarily true.
If the person behind the camera has the talent, then the medium shouldn't matter.
Here's something to level the playing field a litte... a great article from dvcreators.net -
Seven Secrets of Shooting Video to Look like Film
Very useful information. Some of it a little over my head :-D
Tips on how to soften the harsh "video" look and some general tips that are of use to any no-budget filmmaker.