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It's not the end of the world in quality loss, but it's something you might as well do in your NLE if you need to crop....no reason to do it in-camera on the GH1. You can crop/zoom quite a bit on 1080 footage, and still be better than 720 footage. Cropping/zooming in your NLE still looks fine on 1080 Blu-Ray for "videographer" work as needed. I can't imagine why film-makers would need to crop (except to correct crappy camera work), however, but likewise can't imagine why a film-maker would use ETC on the GH2. ETC on the GH2 otherwise seems like a pretty good deal for videographers, IMHO, to use lenses like the 20mm f1.7 in low light run-n-gun situations. I'd probably use it for wedding work.
....So what makes you think that using a 2x digital zoom is going to be better than the 720p mode that acheives about 600-650 lines...