...id like a rotatable screen and the best Video Quality possible in that price range...
Welcome to the forum, Marty! I like the group here, they have strong opinions, but they know what they're talking about and most people try to help and not stroke their own egos.
If you want the absolute "best image quality possible" for $1200 that would be a little different camera than an easy-to-use camera with a "swivel screen" such as the VG30.
Assuming you have sound taken care of, I'll recommend 3 cameras in your price range:
Absolute Best Image Quality:
Blackmagic Pocket Cinema Camera - $995
Used Panasonic 14mm f2.5 lens - about $200
You'll need extra batteries, a rig or tripod, an LCD shade/viewfinder or EVF, an external recorder for sound, etc. - but this camera will give you the most film-like dynamic range in this class.
Here is what this camera can do:
The Case:
http://vimeo.com/77648980
The One (please watch at 1080p):
http://www.youtube.com/watch?v=v5gAq_eN1ks
Most camcorder-like ergonomics with a large sensor camera:
Used Sony NEX-VG30 (body only) - $1041 and up
Metabones Smart Adapter for your Canon lenses - $300
With this combination, you will have 1080/60p, a headphone jack, good in-camera sound, a rotating LCD, no clip length limit, and the ability to add a power zoom and fast autofocus when you can afford to buy the
Sony 18-200 NEX power zoom lens.
On the downside, NEX cameras, like Canons, are susceptible to moire. And this camera is limited to 28mbps AVCHD compression.
Here is what this camera can do (examples from VG20):
Blonde Ambition:
http://vimeo.com/48634282
Date:
http://vimeo.com/38673429
Best Combination of Ergonomics and Image Quality:
Panasonic GH3 - on sale for $998
Used Panasonic 14mm f2.5 lens - about $200
This camera is moire-resistant, has the swivel screen that you're looking for, shoots at 1080/60p for smooth action and slow motion, shoots multiple codecs, to include Quicktime .MOV (like your T2i) at up to 72mpbs, has a viewfinder that actually works while you're shooting video (unlike your T2i), has fast and quiet video autofocus with system lenses, shoots hours of continuous video like a camcorder and has a headphone jack.
Here is what this camera can do:
Clash:
http://vimeo.com/64377878
Genesis:
http://vimeo.com/49420579
Hope this is helpful!
Bill