Transcode and downres 4K to 1080

Some questions here about working with 4K. I almost feel I should know the answers myself but I’ve not yet found clear guidance – any input gratefully received.
I work entirely in 1080 timelines, on FCP7.
Increasingly, there’s footage available now in 2.7 and 4K, from cameras like the GoPro4, and I’ve been making various test shoots.
My workflow has been to transcode the GoPro h264 to ProRes, and at the same time downres to 1080.
Here’s where the problem arises. After the transcode/downres, what looked like very clean and crisp footage in its native form has developed an unnacceptable amount of noise.
I’ve tried the conversion via both Compressor and Streamclip, and the effect is just the same.
Is this something to do with ‘squeezing’ 4K of data down into a smaller frame – or is there some other mistake I’m making?
My other question is to do with getting the best out of the 4K – even putting this transcode issue to one side.
I can really see the potential of cropping into the 4K frame and resizing – but how do I do that given that I’m working in a 1080 environment – therefore the 4K material is going to render down in any case. Is this an issue with still working in FCP7, that FCPX is supposed to get over?
FCP7 7.0.3   MacPro 10.9.5  2x2.66 /6core/ 12G RAM  Blackmagic Decklink HD Extreme2

I use the 2.7k material from a GoPro all the time edited into 720p forms and don't see deterioration - other than there are simply fewer pixels to describe the scene.
My work flow is to copy the files off the card to a folder on my edit hard drive, open GoPro Studio, bring in the material, apply the ProTune preset (I usually shoot raw) then export as ProRes.
Once in FCP, make sure you have turned off "automatically resize to fit current settings". If you haven't done this, you can still open up the clip that has been resized and, in the Motion Tab of the viewer, change the scale back to 100%. This will allow you to move the image around and use whatever portion you choose.
Best,
x

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    function(){return A.apply(null,[this].concat($A(arguments)))}
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