Then when you compress it back down to DV/DVD, you get worse results, because you've lost 2 generations, one in the up conversion, then the second on the down conversion..
Premise 1: It depends on what your end product is.
I'm not surprised it looks marginally better on your computer monitor. Partly because on the up conversion in Streamclip, the software guesses what the pixels are, and fills that in. Then with all that additional resolution filled in via interpolation, and you then resize that in QT player, which would proceed to play all that information that out as 4:4:4 RGB on your computer monitor. That is opposed to your source 4:1:1 DV resolution which you stretch out horizontally in QT to play on a computer monitor which would be a relatively simple conversion to 4:4:4 RGB hence the chroma would look blockier on display in QT. The whole point, is that you never gained resolution. You just had a software algorithm guess what wasn't there and fill that in, but that isn't true resolution in the first place.
And ultimately, the result is temporary, as you'll still be compressing it to something else, so you'll go back to premise 1, which you can read above.
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