Do you think the HD 700 will let me keep my existing still and HD camcorder at home - most of the time ? I have no issue reserving my SR1 for longer, jmportant footage. I am hoping the HS 700 will replace my still camera WITH the option of better than HD2 level HD video.
The HD700 is a better option *if* your primary desire is to have a camera that's always with you. If you're looking for higher quality and don't mind the camera being a bit bigger the HD1000 is a better choice with the 1080i, 10x zoom, and f1.8 lens. There's a HD1000 thread here as well, check into that one.
My favorite HD1000 video: http://gallery.mac.com/xacti#100000
For my personal taste if I wanted higher video quality and didn't mind a slightly bigger camera I'd get a Canon HV20. Check out http://www.hv20.com