Got a new cheap compact. Videos looks way better than Nikon D7000. Why?

Hi guys. I need little bit of help figuring out this puzzling issue.

Few days ago I bought a pretty cool compact camera - Canon ELPH 310 (also called IXUS 230HS). Got it for 100 usd. It's got a 12 mpx HS CMOS sensor, 8x zoom, 1080p/24fps movies and optical stabilization. Thin and light.


I do also own a Nikon D7000 and a bunch of lenses. To be honest I have never really used a movie mode on my dslr. All I cared was photos. Lately though, I started considering playing a little bit with movies. D7000 seems to be a pretty popular "HD DSLR" and it's movie mode was highly praised by many (including Chase Jarvis, popular commercial photographer - link to a video). So I recorded few shorts clips with both cameras and played that back on my computer.

And boy was I disappointed and confused. Small Canon did a pretty good job - fairly sharp and detailed. I was quite impressed by stabilization that's quite impressive especially when used with 8x zoom. Good stuff. Autofocus was good and smooth and made movie making fun.

D7000 was a different story. Maybe I am missing something obvious here. If that's the case, just tell me. On D7000 I used 1080p/24 mode in high quality, neutral colors. I knew about issues with af on dslr's. I can live with that. Maybe my expectations were wrong. Maybe there's something wrong with the camera. Or maybe I'm just stupid and missing something obvious.

Movies from D7000 look bad. It kinda looks like a lower resolution than 1080p. You can't see anything in shadows. Terrible dynamic range. It just looks bad. I don't get it. Why?