According to Jared Adams at Cinema5D the firmware update rumored seems a ways away:
After speaking with Nolan from Canon USA I can safely say that there is no firmware update for the Canon EOS 7D as of yet for USA model cameras. According to the canon rep, there may be differences in the firmware versions 1.0.7, 1.0.8, and 1.0.9 based on language updates alone. But this cannot be confirmed, as he is only able to speak for U.S.A. model cameras.
Note that there may be two reports mixed up here; someone reported that they received a camera with 1.0.9 firmware (most U.S. models seem to have 1.0.7) and a Philip Bloom reported that he had heard that Canon was working on a firmware update that had something to do with 720p.
JVC Picsio, another opinion
The JVC Picsio has only been out for a few days, and already there's a negative review on Amazon for it: JVC PICSIO GC-FM1A
The image was grainy and shaky (even though stabilization was on) [...] I'm returning it immediately. I recommend the Flip HD, best quality for a minicam, too bad it doesn't have stabilization.
Kind of odd, because the camcorderinfo.com review made me think that the Picsio would be better than the Flip.
The Picsio does have some slightly superior video performance, but it also has that unreliable tele-macro switch that sometimes results in a half-blurry image.