DV Avi vs. MPEG2

[scottnew]

I have had a Sony Handycam for the last 5 years which uses an mini dv tape, which I have been happy with. Anyway, that has broken and today I purchased a JVC Everio memory stick camera which saves in MPEG2 format vs. DV Avi. Well I must say the picture quality of the JVC was awful compared to the output from my Sony. Is this the case for all MPEG2 video cameras? Is there a marked reduction in quality changing from mini DV tapes to anything else (since all other formats save to MPEG2 unless you have High Def). If this is the case, how come I can still purchase a mini dv Sony Handycam new for less than a Sony MPEG2 camcorder. Somebody please help, since the JVC may have just been a bad choice.

[wolfkiller]

MPEG2 allows simple editing (cut and pastes) and can be burned straight to DVD. Most people don't have the time or skills to edit DV (which is far more flexible) or want to spend the time rendering to MPEG2 so they can watch their footage.
MPEG2 camcorders probably sell in higher volumes and can hold their price longer.

[scottnew]

Thanks for the info. I have exchanged the JVC camcorder for a Sony Handycam MPEG camcorder. The picture quality is better on the Sony but the jury is still out on whether to exchange again and get another mini DV camera. Anybody wish to hazard a guess how long until mini DV becomes obsolete in the way that Video 8 et al have become obsolete.