Understanding HD/20"iMac/iMovie6/iDVD6

I've read through a number of recent posts about HD here in the forum, but I'm still a tad confused. I know I can't burn a HD DVD of either type, that we hope iHDVD will becoming. But can I shoot with a HD camcorder (say Sony HDR-HC7 or HDR-HC5) with DV tape, import that via FW into iMove6 HD, edit, and then share to iDVD, and burn a SD DVD, with SD video? If so, at what point does the HD get "down-converted" to SD? And if I do all that, will the resulting product look significantly better, or worse, than if I simply shoot originally with a good quality SD 3 chip camcorder (Panasonic PV-GS500)?
What if I take one of the above HD camcorders and shoot in SD--do I get a benefit in image or do I take a hit because I'm "down-converting" as I originally record? In other words, is a HD camcorder in SD better than a good SD DV camcorder (GS500)?
In other words, does it make any sense right now to buy a HD camcorder if I'm only delivering content on SD DVDs? Is there benefit to the cost of the camcorder and the added render/encoding times, as well as possible improvement of SD image quality?
Even with the challenges of HD, it's the buzz work out there now, and others are selling the sizzle of shooting with HD cameras and I'm trying to figure out how to ease into wave of moving from SD to HD. Any opinions and comments welcomed!
Thanks! Dale

Yes, I know a side-by-side would be best, but I'm looking for general comment. Which you actually gave, in that if HD downconverted to SD was significantly better than good SD DV, side by side wouldn't be necessary.
I eventually want to be able to deliver HD content, but can't right now with what came with the iMac. So I'm trying to get a handle on what the work flow will be to provide various content, and the equipment I need and how to use it. I'm a low end event videographer doing graduations, drama, choral, dance, and weddings. This of course in the past has meant delivering SD 4x3 on DVD or VHS. But today one could provide
HD on BR, HD on HD-DVD, HD downconverted to 16x9 SD, SD 16x9, or SD 4x3.
Any HD shown on 4x3 format will be squeezed or letterboxed--any 4x3 shown on 16x9 format will be stretched or matted. Add to this confusion the fact NO ONE has asked for HD content from me, yet some of my clients are now asking if I shoot in "HD", because they perceive they'll get a better product in SD in their videographer originally shoots in HD, and my head begins to really hurt to think about it all. And the costs of HD to the customer might double when one compares my current SD costs to HD.
To show you just how confused I am, I'll ask this question--with the FW connection on the front of some DVD standalone recorders, can you record HD to the HDD in some of these units, but not to the DVD burners in them?
If I shoot in HD, and eventually are able to burn to BR, but also want to provide SD, I control that when I send the edited project in iMovie to either, in the future, iHDVD, or to iDVD, and the latter will create an SD 16x9 letterbox of the project on a SD DVD? And that will look better than shooting in SD 4x3? Am I thinking about this correctly?
Maybe someone on the board knows a link to a good general discussion about HD and working with it, what's possible and not, would be of great help to me--I looked at Videomaker website but didn't seem to find a lot of the information I was looking for....
Thanks, Dale

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