^^ ^ Agreed. The panning control should only be active for mono tracks, say if someone were using this as a field mixer and recording an interview with a boom and a couple lavs all as iso tracks - I'm thinking of a mixer like the SD 302 which was probably designed for situations like this. Someone doing a recording like this would know to record iso mono tracks, and would not use the stereo mode. The 70D doesn't record a separate stereo downmix, unlike many pro recorders.
Selecting stereo mode should deactivate panning and lock the odd/even channels hard L/R respectively, since a proper stereo track would be hard-panned by definition. Anything less than a hard pan would create a recording closer to mono, since you'd be feeding some of the L channel to the R and vice versa.
I think I'll add this to the FAQ as a "known issue". I guess it's not really something that's broken in terms of functionality, but is something that could potentially mess up a stereo recording if you accidentally move it.