This puts the sale price near the middle of the standard pricing of the 60D and the 7D. Is this a too good to pass up price drop? Thoughts/suggestions?
I made this same choice a while back and ended up with the 60D. Unless you need the enhanced stills side of things (8fps, better AF, weather sealing), you're throwing away money on a 7D that could have gone to lenses. And I can tell you that, having used the T3i and 60D, the 60D is way easier to hand-hold when you need it. Also, if you end up putting a lens with any weight on the front, the 60D feels more balanced.
You can get a 60D body for $640+tax refurbished through the Canon Loyalty Program. Last I had heard, they were also giving the same 20% discount on refurb lenses when purchased at the same time as the body. They've been out of stock on most lenses, but that is an option.
Basically, you free up $4-500 for lenses instead of getting the 7D body that has the same tech for your purposes. Also, the 7D doesn't have Magic Lantern, and things like focus peaking, etc become incredibly important for video. The T3i doesn't do ISO intervals of 160 natively like the 60D, but, you can put ML on the T3i and get that.
Your choice should basically be between the T3i and 60D, and then its just a matter of whether it will be on a tripod or rig all the time, or if you might do some hand-held stuff. I'd spend the extra few hundred dollars on a 5dII ($1500 through Canon Loyalty) and get the low-light ability before I'd buy a 7D in your case. Especially if you are doing indoor work with the theater.