Most people find it acceptable.
I dislike it because of the colorspace conversions that take place. You go from 4:2:2 to 4:1:1 and then back to 4:2:0 which I find revolting. You go from analog to DV to MPEG DVD. I prefer to avoid that middle step, either leaving the video as uncompressed/lossless AVI, or going directly to MPEG.
There can be oddities in the colors, especially red and green, as well as contrast issues when using DV as a transfer format. It was never intended to be a transfer format. It was made for shooting new video and editing.
But it is a cheap method that can be used with existing camera equipment. The old saying "try it, you might like it" really applies.
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