QTP7 provides more options, one example being a slider to set H.264 quality. It can also be using for basic editing. For example, I sometimes use After Effects for creating TV spots. I will use Audition to create the voiceover / background music, with a different track for different versions of voiceovers.
I then have the choice of dropping the mixed track into a channel in AE or I can simply open the desired audio track in QTP7, select the entire track, then select the entire video track in QTP7 and use the paste and match command to drop in the audio track so that, even if it is a few frames off in length, it will automatically stretch or contract to match the video.
The varying audio tracks can also be stacked in the QTP7 movie, using a checkbox to set which audio track is active when outputting. And speaking of audio, it is best to use a dedicated DAW app such as Audition for handling complex soundtracks because the tools are more advanced and of a greater variety than in an app such as Final Cut or Premiere.
About interactive video, this is possible via QTP7. Details can be googled, but what you do is create a text file with time markers and a couple of other things. This can be pasted into the tracks along with the audio and video. This way you could, for example, have the video pause at each marker, waiting for a spacebar or arrow to continue the video. Such markers could also be generated from within a decent DAW.
The thing about video is that with the average presentation, it is a larger file than Hype output. It is also fixed in its proportions and resolution, which means that you cannot create relative objects that adjust positions according to the size of the browser window. With a Hype animation you can get away with less bandwidth by controlling loading and wiping of content (e.g., load on scene, delete when no longer used).
One does not necessarily need to do just one or the other. For example, using a web design app you can drop a scalable video into a background layer and place a HTML5 animation in a foreground layer.
Personally I am a big van of both media. I am heavy into cinematic video FX (using most everything in the Red Giant stable) but that can be time consuming and expensive for the client. Unless I am dealing with a big name client with big bucks on the line, I tend to use Hype when possible.
Hype came along at just the right time with just the right capabilities, in the same way as Photoshop 3 appeared at just the right time, which introduced layers and opened up all sorts of new possibilities. For me Hype today is like what Photoshop was for me in the early 90's - the ability to think of cool stuff and then create it.
I look forward to the day when Hype will have the kind of a market footprint, development budget, and expanded development team so that it can compete head to head with the likes of After Effects and Motion, but with all the advantages of modern web capabilities.