The photos from camcorders are faked. Yes, they use digital interpolation to up-rez very low pixel stills.
The V700 takes stills that are only 2.3 megapixels, and then digitally processes the picture to make it 6 or 8 megapixels. Almost all decent stills cameras take at least 10 real megapixel pictures. You simply will not get stills from consumer camcorders, such as the v700 (V720), that rival those from even the cheapest P&S cameras.
There is a camcorder just as good if not better than the V700 that takes excellent real 12 megapixel stills (jpeg and RAW), no artificial uprezzing.
Its video quality is similar to the V700: it shoots 108060p at 28mbps (unlike your Canon), has a 24X silent powered zoom, starting at 25mm (better than the zoom of the V700 at the wide and tele end). It is f2.8 even at the long end (better than the V700). It has an external mic input, manual and automatic modes. It even does 720p at 120fps - yes, 120fps (for HD slo-mo in-camera). It has the same resolution 460k pixels 3" LCD as the V700, but it also has a viewfinder that is better than that of any any consumer camcorder (and most cameras) and 1.2 million pixels. Stereo sound (Dolby) with zoom mic, just like the V700. Same OIS. same size sensor as the V700. It has more controls in video: film modes, controls in each film mode of sharpness, contrast, saturation, noise reduction.
Here is a sample video from this camcorder:
It costs the same as or less than the V700. You could use it as a really good stills camera or just as a really good camcorder, with pro video features.