7D vs GH1 definition/sharpness comparison

As a newbie, I don't understand the practical implications of the GH-1 having a "bad" codec.

Can anyone explain what the downside is of a "bad" codec and is there anything that can be done (conversion to ProRes422, for example) that would enable one to get around the downside of the bad codec?
 
When the camera moves quickly, or the subject moves quickly across the screen, they turn to mush. It's like looking at a VHS tape that's been copied 10 times. Well, maybe not that bad, but certainly poor enough not to stand up as HD.

And no, there's nothing that can be done after the fact to improve it. It's like taking that bad VHS copy and burning it to BluRay.

How Panasonic managed to get so many things right and get this wrong boggles the mind.
 
Wow... that sucks. I've seen some nice footage from the GH1, but didn't realize fast motion was an issue.

Here's hoping for a nicely improved GH2 and SOON!

So, if one's intended application isn't going to involve quick motion, the codec is not necessarily a problem?
 
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