So this is the promised Comparison video between the Hero 2 and Hero 3 Silver Edition Cameras. The blacks seem better on the Hero 3 but the down side is some detail is actually lost and the image looks to be over saturated even more that the Hero 2. Hoping a firmware update will fine tune this. Sharpness seems fine on both cameras.
What wasn't covered in this video was the menu responsiveness of the Hero3 which is way better than the hero 2 as specially noticeable when I was editing the time and date.