Trying to understand relative file sizes

I have a 19 second clip (ACVHD MTS file) that i'm experimenting with. It's 23MB in size. 1440x1080i
I used VoltaicHd to convert the MTS file into AIC. The result of that conversion was a file 284MB in size (and apparently 1920x1080i -- not sure how that happened)
I then bring the clip into FCE for the purpose of immediately exporting it. and the final product is 162MB in size (it's a 19second clip!) which I think works out to about 30GB per hour!
I'm obviously doing something seriously wrong --- Perhaps there's an online resource that I could be directed to to make sense of all these conversions etc. Otherwise I'm at a loss on how to proceed. Obviously there's no way I can export a 30GB movie.
Thanks in advance

The necessity of an intermediate format for editing makes perfect sense, thanks for clarifying that. However, what I remain confused about, is that once my editing job is finished in FCE and I want to prepare my video for say upload to my AppleTV, I'm stumped.
My sense from the conversations on this thread is that there's yet another process after FCE that I will need to follow, perhaps using iDVD (Which is unfortunate, since I recently got rid of our DVD player in favor to an Apple TV box in the living room)
To follow your analogy, now that I'm finished editing how do I go from WAV back to MP3

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