We've just found a diagram by Canon that rather elegantly settles the debate, showing the relative strengths and weaknesses ...
Optical Zoom 2.9x Optical Zoom During Movie Recording, Clear Image Zoom Still Image 20 M 5.8x / 10 M 8.2x / 5.0 M 11x / VGA 44x, Movie 5.8x, Precision Digital Zoom - Still Image Still Image 20 M 11x / ...
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