Panasonic is pitching the TZ7 as a 'hybrid' camera: one that can shoot both high-quality stills and movies. It does a pretty good job. The movie definition is good -- only available in 1,280x720-pixel resolution, though, not 1080p HD -- and the 12x zoom makes it as versatile as a pocket camcorder, with the added bonus of that 25mm-equivalent super-wideangle lens.
You also get to record stereo sound, and the super-efficient AVCHD format means you should be able to squeeze nearly double the footage on to your SD cards as regular MPEG-4 -- quite a factor when you make the switch from standard-definition movies to HD.
Let's not get too worked up, though. The movie mode is good, but sluggish. For some reason, the zoom slows down to a crawl, the focus changes with the zoom setting and the TZ7's AF takes an age to catch up. You can shoot great movie clips with this camera, but you'll either need to plan them carefully or do some crafty editing later.
While the AVCHD format does give you much better image compression, it's less straightforward than MPEG-4. You need AVCHD-compatible editors and playback devices, and it's not just as simple as dragging across a movie file from your memory card and double-clicking it to play it. The good news is that you can swap to motion JPEG format, even if it does make the files fatter.
If you only want stills, get the TZ6. You'll pay less, too. If you fancy HD movies on your superzoom, get the TZ7. Both are brilliant cameras, so it just depends on what you want to do. You could be picky about the slow zooming and AF in movie mode, but this isn't a pro camcorder, it's a hybrid -- and a really good one.