I'm in the process of trying to decide which camera to buy and would appreciate any insights/comments from anyone who has used either camera.

Option 1: GY-HD200 with the DR-HD100 HDD. As an old "Tape" guy I like the idea of a tape backup and then being able to import the HDD footage directly into FCP7.

Option 2: GY-HM700 - this would bring me kicking and screaming into the "Tapeless" age. I like a lot of the features listed in the literature but I have read in other forums that there were problems with FCP usage as it is touted in the lit, especially that the QuickTime file format the camera produces cannot be edited in FCP "ProRes" without long render times.

Any experience you can share would be greatly appreciated.

I use the HM700 since the end of June and I like (and love) to work with my HM700,
I use FinalCutPro 5.2 and it works when I edit direct in XDCAM EX-Codec.
When I use ProRes422 it takes time to render! Or another way, you transcode the files to ProRes during the night and edit it on the next morning, that will be also a good workflow for you, when you want to work in ProRes.

why would you want to convert to prores when final cut can already handle the XDCAM EX-Codec. If final cut works with XDCAM EX-Codec why would you spend the time coverting?

Because many people want to work in ProRes