Lossless is always better than a DV route,
True for the original (usually analog) video stream such as the output of a VCR or live camera.
However, if the material is already on a DV/MiniDV tape the losses associated with DV format have already happened. That does not mean you should stay in the DV file format for restoration or serious editing.
It boils down to which is better:
- the player's DAC to s-video to TBC (maybe) to capture card to lossless file, or
- DV file to transcoding software to lossless file.
Only testing the options with you gear and software can answer that for sure