I think the TZ65 lacks the HD videos of the TZ7. You know the TZ can record in other formats, right? Doesn't have to be HD. The sofware that comes with it is diabolical though isn't it? Vista and Windows 7's WMM is supposed to be able to handle AVCHD but otherwise you pretty much need a convertor or a HD editor.
TBH I don't like how fragile and fiddly the TZs feel, they're very plasticky and the dials and controls are too easy to jog, which is a constant hassle. The picture quality, long zoom and features are absolutely fantastic but there's pretty big drawbacks. I love mine but sometimes it infuriates me and I just don't trust it not to break.
I love Ixuses… Had 3, they've all been awesome. Tiny, tough, good quality, and if you buy last year's model usually not expensive either. I kind of wish I'd bought another. Basically I was happy to take my 800 into anything- it got soaked in beer at a Bad Religion gig, filled with rain at a motorbike rally (left in a waterproof pocket with the top of the pocket open- filled with rain to the brim!), left lying on the west highland way overnight in the mist and rain, dropped from a moving motorbike onto tarmac, then round the world by my brother and attacked with sand, dust, glaciers and tropical storms. Apparently it's finally died this week, RIP awesome Ixus. I expect my TZ to become an insurance claim the first time any of those things happen to it.