Jack of all trades master of none is not what you want. that Pana is the one for the dough. The forget the digital still feature on video cameras--- it still doesn't have the cost-benefit ratio that simply buying a video cam and a separate digi still cam do. Maybe in 2 years, but not now.
I think that the video compression toolkit from Microsoft is excellent and free- can't remember what they call it now.
Most DVD authoring software has the encoding engine for converting your DV to the correct flavor of MPEG2 for DVDs--- and it is very easy. Go for DVD It or one of the other DVD authoring applications in the $100-200 range. Above that and you'll be getting lots of stuff that is off-topic to your needs. Below that and the software sucks.
For doing the BEST possible encoding for web, go with Media Cleaner from Discreet. Or Canopus Procoder. Of for very little dough, Canopus Procoder Express.
The video compression codecs that are the best are from Sorenson.