I don't know about the PE700 specifically but I have made several quilts quilted in the hoop with a 6x10 Brother and an 8x12 Baby Lock.
I almost never quilt the whole thing in the hoop. I quilt by rows or by blocks and then join them with the QAYG method. I use the regular embroidery thread to quilt my sandwiches and never had a problem. My quilts go into the washing machine and come out OK.
This quilt, for example, was quilted block by block and then the border was made by rows. They come out fast and they are lots of fun to make.
I hope this helps.