I have definitetly noticed a difference in quality between what's recorded on a Mini-dvd camera and a Mini-dv cam. Think of the difference between a VHS and a DVD. Also, don't those little Mini-DVD's only hold like 15 minutes of video as opposed to the 2 hours on a regular DVD? I'm not sure, but that's what I think.
Plus, and here's something not related to gear. I've been doing alot of video transfers for people lately(mostly family stuff) which were shot using those old terrible VHS camera's or some other crappy way, and everyone seems to wish that they had a better way to do it back then(quality-wise). Convenience seems like it should be a factor now, but 20 years down the road, I can almost guarentee that you'll wish that'd you done it the best possible way.
So lemme make sure I got this right then. For me to get the miniDV stuff to a DVd with menus, music, etc., I do the following:
Shoot the video
Hook it up to my computer via firewire
Play the video back at real time so it can be captured on my computer
render the format to something that can be edited (or is this done automatically during the transfer?)
Edit the video, create menus, etc.
Save in MPEG2
Burn to DVD
I want it so I can easily make copies and send to family members so they can play it on their DVD players. It is the whole DLing process of the miniDV that seems times consuming and a pain in the arse, especially if I am gonna end up with a lossy result anyway by the time the video makes it to DVD.
I do this stuff all day long, so let's be really clear about something. The MiniDV-to-DVD workflow can be a major pain in the ass, especially for someone who doesn't know a thing about doing it. You've got to shoot, capture to your PC, edit, render, encode video to MPEG2 and sound to AC3 (or whatever), master a DVD, and burn. That whole process is THE MAIN REASON why MiniDVD EVEN EXISTS IN THE FIRST PLACE. So, don't let there be any doubt about that for starters. Plus, all of those workflow steps take time and software and sometimes a steep learning curve for newbies.
HOWEVER, for anyone other than a complete newbie consumer who just wants to shoot and watch it on a player, MiniDVD FLAT OUT SUCKS BULLOCKS. If you ever want to re-edit your material, if you ever want to put a compilation together of footage from different original media, if you ever want to watch the originally shot high quality uncompressed footage, MiniDV is a MILLION TIMES better than MiniDVD for a whole bunch of reasons explained above in this thread. BUT, don't be fooled into thinking that making a DVD from MiniDV footage will be even close to as easy as just pulling the disc out of the cam and plopping it into a DVD player. This is a trade-off, and as far as I'm concerned a really easy one to make -- MiniDV -- but let there be no doubt it is a tradeoff, and that tradeoff is the exact reason why those DVD pieces of sh!t even exist.
Ultimately, the decision must be made by the purchaser as to what type makes the most sense for them, but if you are even a little bit interested in editing some of your footage into small movies, the choice is an easy one.