- Hardware is fine.
- Goal is attainable.
- Family probably needs deinterlaced 59.94fps SD 640x480 MP4 on HDDs.
- Keep lossless for yourself on large HDD, then back it up to another HDD.
JVC settings fine.
QTGMC best.
Are you using Hybrid? AvsPmod+
VirtualDub? Writing your own scripts?
VirtualDub masking.
Remember to set VirtualDub in/out as YUY2, not RGB. (Video > Color Depth or Decode Format)
VirtualDub ColorMill is pretty good for color correction.
Premiere is more Photoshop-like.
I use both. I try ColorMill first.
My experience with Izotope has never been great, it's always been too weak for heavy restoration. But it may be fie. I have RX7 demo now, not used it much, but I can already tell it's no
Sound Forge. But for minor things, like removing hiss, it seems fine.
Premiere's export for H.264 has always been weak. It's the SDK version of
MainConcept. Hybrid would be my choice for the x264 encoding, as it has all the quality options. Premiere has always been best as only the editor (and same for FCP, Vegas, etc). Lossless in, lossless out.
You seem to be on the right path. Your method will work, but a few tweaks would make it better.