I’ve never used OnLocation, but in Premiere there is an Auto Scene Detect feature that you could use during capture. In theory, this will clip the files to cuts, each time the Record button was pressed. Perhaps OL has a similar feature.?
Otherwise, you would manually set In/Out points for the desired clips during capture. This is what I do.
Don’t rush the capture process. It’s not glamorous, but it’s a very important stage of what can be a very complicated process.
You don’t want to have long files for the Premiere project, you want clips, for editing.
You won’t have to create multiple instances of clips, you can reference any clip as many times as you need to in a NLE! 🙂
As far as what to do with them. Editing them as a music video can be nice. Pick a couple of songs and edit around them. They will help to give you tempo, so you may not have to put as much thought into that.
Generally, hard cuts are good, transitions effects are bad. Although, slow dissolves are nice.
Maybe make a tile grid, and scale down portions of video to run simultaneously in different parts of the grid (after deinterlacing, of course).
Or, slow tracking reduced-size video frames horizontally through the screen…
Just a few ideas
Vince