Welcome.
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Originally Posted by FSPrinting
I have my eyes on the ClearClick Video2USB upscaler.
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No, that's an infamous garbage device, not at all worth your money.
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This is a red flag. There should be no "options". When consumer analog video (VHS, Hi8, etc) is more/less than 720x480 (or x576 PAL), or the 352/704 variants, quality is butchered by bad internal processing. It should never be more (HD,etc), or less.
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directly into OBS and using their de-interlacing feature
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Butchered video, 50%+ of quality is destroyed. Both motion/intraframe and in-frame.
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would this work just as good as the "older" methods,
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What is the exact "older method" you refer to? (Note that it'll be hard to butcher video worse than the ClearClick/OBS method.)
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would the quality be as good?
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No.
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Am I losing important data / quality by doing this?
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Massive quality loss.
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I would LOVE to eliminate the encoding process and
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There is no way around this, while still keeping any degree of quality.
Fast
Cheap
Good
Pick 1.
Yes, 1, not 2.
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"MP4" is just a wrapper, and you probably mean H.264. But H.264 is a delivery/final format, not a capture format. When you capture to MP4/H.264, the quality is garbage. The H.264 GOP-based encoding is not made for on-the-fly realtime processing like that.
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Originally Posted by latreche34
It might work but not as good as the traditional capture workflow,
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I think that's far too kind. If you're watching/hearing the output on a tiny cell phone screen, sure, "it works". If you have any hopes of retaining quality, then it doesn't even remotely work.
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De-interlacing on the fly and using OBS is never recommended in these forums, It opens up a giant can of worms, the baked in artifacts are hard to fix down the line, Capturing analog video is not one task, it's a process, If you don't have the patience and want quality find someone to do it for you.
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^ This.
... but also noting that "someone to do it for you" needs to be vetted. You don't want some clown to also use cheap devices, bad methods, etc, then charge you money for bad work.
Or acquire the quality gear to get the quality results. Buy it, use it, resell it. Quality gear holds value, junk is yours to keep (unless you find a sucker, hot potato).