Many people appear to like the GH1's sub-sampled image quality better than Canon's moire-prone video artifacts, regardless of bitrate. For video, I prefer an even softer focus myself, and often use a Tiffen black-tint diffusion filter in front of the lens to minimize digital edge aliasing. At low frame rates, razor sharp edges don't usually produce the most pleasing moving images.
Also please note, it's spelled "LPowell", not "ipowell". ;-)
Also please note, it's spelled "LPowell", not "ipowell". ;-)