DV does not get better because you are editing 1:1. Just like jpeg files does not get any better if you are converting them to BMP
However if you are using mixed source footage (from other sources than DV cameras) or you are doing titles/CGI graphic in your project and your final output is digibeta or other formats than DV, then it makes sense.
1:1 is better for multiple renders and generations since the DV25 frame needs to get decompressed and recompressed in order to create the effect. When making DVD encoding, this can add up... and renders as 1:1 or working at 1:1 will result in a slightly better to better picture depending on source and number of generational renders.
Thats true, but i must admit, that i´m not sure i can tell the difference if you recompress a DV file with DV compression. Actually you are doing recompression on the whole picture when just adding a transition or a title. My co-worker likes to do video-mixdowns in DV mode. That should also cause a re-compression... Maybe i should try doing a test on that someday. Doing 5 generations of dv recompression or something.