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I bought the T2i, very similar to the 7D (video wise, if not the same) and it came with the kit lens. Can't complain one bit about the quality of the video. Shoots in 24p, 30p and 60 (in 720p). Much better than "youtube" videos as one said earlier. Quality is awesome even with the 18-55 kit lens. Great for day shooting.
The panasonic hs700 looks good for what it is. 60p 1080 on a handy cam is dope. I wouldnt personally get it but if your looking to just film your friends and have no real desire to really learn everything about filming it could be a good bet.