I have both currently. If I"m going to be taking videos, the GH1 w/ 14-140 lens is 1000x easier to use and has equal (if not better) VQ (video quality). The 7D (especially on 720p) exhibits a lot of resampling artifacts (jaggies).
For casual use, the Canon's are somewhat frustrating to use for video. Manual focus for any dynamic subject is a pain and me reaching around and adjusting mid-shoot is distracting (bump, bump, noise, noise). Using contrast AF during the shoot is VERY distracting (aperture opens up, pic gets brighter, focus hunts, buzz, buzz, OK...in focus). In Lens IS is also loud enough to come through with the 7D. With the GH1, it silently AFs continuously if that's what you want it to do, and IS and aperture is silent.
Yes, with a carefully planned shoot at 1080p, the 7D will give you better results (less compression), but90% of what I shoot is impromptu, so the GH1 fills my needs much, much better.
Now, if we go to stills, the 7D is definitely master, particularly at higher ISOs. And the lens selection is infinitely better as well.
I'm lucky enough to be able to use both. It you are primarily interested in video and not want to compromise much on the still side, the GH1 is ideal.
If you are primarily concerned with still IQ, particularly at higher ISOs, then the 7D is a great camera and can produce great video as well with careful planning.
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Rick Krejci
http://www.ricksastro.com