60GB of DV should last a little over 4 hours and that's about 25mbps. To get 7 hours they must be using about 15mbps which seems a little low for 'highest' quality. It's in the ballpark though.
I have the SR11 and haven't come close to filling it up - I do keep the drive fairly clean (move raw video to data DVD and PC HD as soon as I can) but have had a few hours of MTS files and it still says there's plenty of room for more.
Can't complain about the quality, but then my last camera was a HC40 so I guess any move up from five year old SD would look good.
I will say that I love the camera - Just wish it had two additional features the HC40 has - Time Lapse and A/D Passthru (digital recording from external analog source).