Sony's designers definitely made the most of the fact that the HDR-CX7 records its video to MemoryStick Pro Duo cards. The camcorder is little more than a lens and LCD screen in terms of size, though that's both a positive and negative thing. Sure, you can fit the CX7 into almost any bag, and even a large jacket or sweatshirt pocket, but the ergonomics of the grip are a little off.
It's certainly more comfortable to hold than Panasonic's SD based HDC-SD1, but since there's no eye level viewfinder, I often found myself holding it higher than I would some camcorders, and at a slightly odd angle. Also, since your hand basically covers the right side and top of the CX7, Sony was forced to put a handful of buttons on the left side, behind the LCD screen.
That's never a very good move, since you can't readily see that spot when you're shooting, and if you do need to use one of those buttons while capturing video, you'll likely shake the camera horizontally while pressing it.
Of the buttons placed there, the backlight compensation button is probably the most worry some, since it's highly likely you'll use it on the fly, while most of the others would be used before or after shooting.
As usual, the HDR-CX7's main interface is its LCD touch screen. Even though the LCD is 2.7 inches in size, it still felt a bit small as a touch screen interface. The main virtual buttons are big enough, but ancillary buttons, such as the OK button in the upper left, or the X (cancel) button in the upper right of some screens are rather tiny. On more than one occasion, I accidentally hit one of the bigger buttons when trying to hit the tiny ones.
Combine that with the fact that the touch screen requires such an extensive tree of submenus, and the thrill of a touch screen interface starts to wane pretty quickly. Still, some people say they like this kind of interface, so make sure you try it out in a store first to see if you like it before you buy. Following a recent trend in camcorders, the CX7 doesn't include a minijack microphone input.
If you want to add an accessory mic, you have to use one of Sony's in the CX7's Active Interface Shoe (aka proprietary hot shoe), which provides an interface and power for accessories. You have two options to send video to your TV directly from the camcorder. You can either use a mini to full size HDMI cable, or use the composite AV breakout cable included with the CX7.
Given that they are rather rare right now, it would've been nice for Sony to include the special HDMI cable, as Canon does with the HG10. A third option is to use the dock, which has the same composite AV out as the camcorder, as well as a component output (also via a breakout cable), and a Mini USB jack to connect to your computer. I was surprised that Sony didn't include a normal-size HDMI jack on the dock. It would've been a really nice touch.