Hello,
I am using the JVC GY110 camera so while its not the same I also often deliver SD DVD's and SD masters for broadcast and customers.
Personally I keep everything native, rendering to Uncompressed and then simply output to whatever format. SD-DVD's made from my HD timeline are brilliant. One of the nice features, IMO, is the ability to make a copy of the TL and make many different render formats for outputting different versions.
Nice to hear you are working with Omneon, I really like them and had one of the first Omneon systems in Germany while working at FAST. We had made awesome progress at integrating Omneon and FAST, unfortunately due to competing products when we were acquired by Pinnacle that relationship ended...and look at how well Apple and Omneon have since done together...
Ces La Vie.
...that would be a great feature for NextGen, a Batch output engine so that a single TL could be exported to several different formats with one export. Pro-Coder from Canopus/GrassValley has this, as I'm sure other apps do as well.