Eskimo,
Any camcorder that uses the DV Standard records at 720 by 480. When you capture it through fire wire to a PC, it is in effect a file transfer so you lose no quality.
The still resolution the video cam takes is not the same as the video resolution on some cams(they make it smaller so it looks better), the image quality on Video cams seem less then still cams because individual frames from video do not need to be high res for the video to look good.
The difference in quality between video cams comes from the Number of CCDs they use and the lenses. (it has been some time since I looked into it by high end video cameras had 3 CCDs, one for Red, one for green and on e for blue. the lower end ones split the CCD up to take in the light all on a single one)
Still Cams for the most part have better CCDs because you need that single frame to look very good. (well, my still cam knowledge is a bit lower, so I may be wrong here)
A DV cam has a huge advantage over a still cam, in that the mini DV tapes are far cheaper then big memory cards.
Another advantage of a DV camcorder is the DV .AVI format. It is a far better format to edit the any Mpeg format. a MPEG video encoded with a Variable bit rate is going to look allot worse then a AVI file if it gets rendered more then once.
Some info on the DV format. I have not looked at how still cams capture video, but I don’t think there is a standard, they use various codecs, frame rates and resolutions, and this can make editing the video a pain in the ass.