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You can only record 20 minutes on the small DVD's as compared with 60 minutes on a MiniDV tape which might cause you some problems. So, not only are the small DVD's more expensive than MiniDV tapes, but you'll need 3 of them for every 1 MiniDV tape.
The video is saved as an MPEG2 file on the DVD. This can only be done using a constant bit rate, whereas when you edit raw footage on a PC, you can then compress to MPEG2 using a variable bit rate which will give you a better quality final result and allow you to save more high quality film onto a DVD than using constant bit rate. You also run the risk of having to re-encode the footage which will lead to further quality loss.
I'd, therefore, personally go for a MiniDV camcorder over a DVD camcorder.
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