Poor video quality after rendering or publishing iMovie video - Problem?

After completing production of an iMovie video and then publishing it, the video quality is absolutely horrible. Is the normal or am I doing something wrong?

I hope the iMovie programming team at Apple is READING THESE POSTS, plus the other threads complaining of the lousy quality that results when interlaced video (480i or 1080i) is imported into iMovie '09 (even with all the recent updates). Various folks and e-book authors have posted workarounds, but these are cumbersome and defeat the entire purpose of iMovie -- which should be a simple and elegant video editing solution. Millions of users have interlaced video which they would like to edit (for you novices, you're affected if your video was shot on mini-DV tapes, or the HDV format -- plua many other non-tape formats also use interlaced video, so check your camera's specs).
Apple, PLEASE ADDRESS THIS GLARING FLAW in iMovie '09. It's absurd that iMovie 6/HD, which worked flawlessly with DV and HDV footage, is no longer supported. IMovie '09 has many great features, but what value are they if the end-product looks bad?

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