Camera file format question

Not Quite FCPx but its about camera formats to bring into FCPx, I would welcome the advice.

I have a JVC GY-HM600E thats just had a firmware update and we have now been given the following...
50Mbps H.264 Extreme High Quality mode (XHQ) and now gives me 1080 at 60p (59.94p) (Quicktime (H.264) 50Mb/s VBR

I used to do all my sports stuff in 720 60p (59.94p) (Quicktime MPEG2) 35Mb/s VBR to reduce motion blur
Now the new XHD to me is better but I am confused as I understand MPEG 2 is better than H.264 or am I wrong.

I now see an advantage of using the new 1080 at 60p and creating 720p videos but being able to crop (ie use less of the 1080 frames to create a closer image and not see image loss or just making it fit to frame at 720
Do I have it right or wrong or is there an advantage to staying with the 720 60p in MPEG2

The camera can't do 1080 60p in Quicktime MPEG2 it will only do 60i

All my videos end up on Vimeo and all processing is done on a iMac 3.5GHz I7 32GB NVIDIA GeForce GTX 780M 4096 MB
Thanks

H.264 is definitely a newer, better compression codec than MPEG2, offering better quality at the same bitrate. 1080p will be better than 720p for the reasons you state. Stick with the best at what your camera can do, which in this case is its XHQ mode.

I totally agree with haysoos. Couldn't have said it any better

- Ronny

Thank you gents..