Eddy Robinson
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Thing is when you invoke a MAGNIFY mode, what's coming out of the chip is just a crop of a portion of the sensor.
The critical issue is what's coming out of the chip / being processed / being recorded when you are NOT in MAGNIFY...
I think the only purpose of magnify is to easily check your critical focus - mainly in still mode, though this utility carries over to video. Obviously, one won't focus any better zooming to 1:1 HD than from the full sensor. In factice, though, I've found it perfectly usable - then again, I never expected it to be an accurate guide to the recording.