It actually has some kind of Camcorder piece that attaches to it, but I believe that is an add-on you have to buy.
Yeah, I don't like the lossiness of it - at least on paper (like I said I really don't know visually the difference between DV/MPEG2/MPEG4 - most taper DVDs I've seen are old shows that are sourced from VHS, I haven't really got into recent shows). If it was MPEG2 it might be better since the eventual destination would probably be DVD.
Also, reading reviews it doesn't sound like it has enough battery life on it's own to go for multiple hours... I suppose that could be worked around, but it sounds like it dies after about four hours just playing video so recording would probably be worse.
It seemed like a good option to do long shows, without the potential of missing songs/tape flip and additional media... but if the battery is going to die in an hour or two anyway.
I suppose I'm trying to find the video equivalent of the NJB3/PDAudio model of recording but the technology isn't quite there yet. So I'll probably just go MiniDV if I do anything at all.