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1080p does look more detailed than the 720 stuff. The image quality is better with 1080p, however, it's not without some limitations, you've got to plan your shots so that you stay within bounds of what the codec can handle, and as long as you do that, you'll get really great looking stuff.
720 mode is a bit easier, it's not as detailed as 1080, but the codec holds up better amidst rougher shooting conditions in terms of fast moving action, etc., quick pans, etc., so there are tradeoffs to both the 1080 and 720 modes, you really just have to pick the right mode for the job and the planned destination format. If you're shooting stuff that is only going out on the web, 720 is great, however, if you're doing a narrative that may end up on the big screen, you want the added resolution of 1080 plus the 24p framerate.
You really don't have to jump through hoops for 1080p, people make it out to be much harder to work with than it really is. A lot of us are using a program called Neoscene which converts the 1080i/60 files using the cineform intermediate codec into proper 1080p 24p, it's fast and simple, and virtually lossless, plus it has a bunch of other benefits - the software is $100 but well worth it - it's a simple first step to the workflow and works very, very well.
Again, you have to be more careful how you plan shots when doing 1080, but so long as you do this, you should be okay, and I think with the right approach, you can accomplish most anything you want with the GH1 1080 mode, you'll just have to get creative.
It's not a perfect camera, but it's awfully good for $1500, the few hoops you must jump through are worth it for this kind of quality, in my opinion.
For some reason I see alot of people shoot in 720 60p and convert that to 24p? Am I correct on this? And if so, is that accomplished in Neoscene as well or can it be done in most NLE's?
Thanks
If you drop it into a 24p timeline aren't you just going to see slomo?