The DVD camcorders aren't as cool and easy to use as one would think. That's what I gathered when doing a similar research recently. There are many formats, not necessarily compatible with eachother.
All digital camcorders allow you to copy the video to the hard drive. You do this through a firewire connection or high-speed USB 2.0. After you're done editing it, you can of course burn it on a CD or DVD.
I was looking for a camcorder for my g/f for christmas, but my budget was up to $400. In that range I ended up getting the Panasonic GS35 (she also wanted something pretty small). My dad bought a GS250 earlier this year, and the picture quality from this one is really good, but it also has a lot of bells and whistles that an average person will not use.
The camcorderinfo link sprintman provided is a good resource.