Arguments for Digital Zoom to be better are:
a) Fuji actually have 12M pixels and interpolating in camera before committing to 6MB jpg could give better result.
b) With the proper framing enabled by the digital zoom, the metering would be more accurate and will result in a better picture.
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The subject for comparison purpose is the wooden bird. The pictures are cropped to have just the bird. For the 3x optical zoom, the cropped image is upsized using bi-cubic at 10% step until the image is roughly 640x480. The mid digital zoom picture (282mm) is cropped and not re-sized at all. The max digital zoom picture (695mm) is down-sized using Bi-linear(2pass) in 10% step till image is about 640x480. The Pana FZ3 shot is cropped and shown as it is without any resizing. The Pana's image is slightly more yellowish compared to the actual Bird color. F30's bird greyish color is more accuate.
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What can we conclude ? I think the 695mm picture is worse, and may be the the 282mm is very very slightly better than the sized-up 113mm shot. But they could not compared with the FZ3 shot at all.
The recommended rule might be stay with optical zoom. The digital zoom needs one to have higher shutter speed to compensate for camera-shake that reduces the light input. Mid range digital zoom perhaps can be used when the lighting is adequate.
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