Well, I do it this way:
For archiving I dub my movies back to tape, this means no quality loss and for watching them I encode them with mpeg2 and burn it on DVD so that I can play them in my standalone DVD player.
Compressed with mpeg2 you can get one hour on DVD with still excellent quality. But although the quality is quite good it is not lossless, so I have another copy on MiniDV tape.
Storing uncompressed DV material on DVDs is not a good
idea, as you mentioned already you would need a lot of DVDs and it is also more expensive than tape.