I mean no disrespect, but that digital zoom is crap. You can do that in post. The reason it looks shitty at 10x is because you've cropped the image so drastically. You can do a "3x-digital-zoom" in post, and it will look just as sharp as what was demonstrated here (except you'll have greater control of what you're cropping).
If you're not pysically zooming with a lens, I see absolutely no reason to do it digitally in-camera. I believe this feature was added strictly for the non-filmmakers, the people who either don't know that this can be done quickly and easily in post, or who know it can be done, but don't care to, and/or don't own the software to do it.
I'm sorry, I don't mean to shoot you down. I think you just chose the wrong subject-matter for a video demonstration, cuz it's pretty much just marketing hype.