I just bought a Mini-DV camcorder ([broken link removed]) on (€700) and plan to edit the footage on my PC and then archive back to tape and also onto "regular" DVD-R.
I don't think that editing on the camcorder is that practical, for me, anyway.
Good review of Sony's top end DCR-DVD403 DVD recorder on camcorderinfo.com.
Note that they are less impressed with cheaper models (costing less than a grand) - they thought that MiniDV offered better quality recording on cheaper models.