H.264 isn’t a great codec for editing (it’s optimised for small file sizes not for ease of editing), but then nor is AVCHD .m2t (as that’s basically just H.264, in an MPEG wrapper). There are three main approaches you can use when working with AVCHD:
a) Use ClipWrap to rewrap the video as a QuickTime .mov and edit with that. No loss in quality, but it’s no longer an .m2t file. Perhaps archive the .m2t file somewhere just in case.
b) Keep the .m2t file and edit with that in Premiere, but create an h264/mp4 or similar proxy for logging in CatDV, playback on the web, etc. (Or use Xuggle to play the .m2t file within CatDV, but be aware that playback is quite jerky and only suitable as a low quality preview).
c) Transcode all your media to a common mezzanine format such as ProRes and use that, perhaps archiving the original .m2t files. This is particularly useful if you work with a variety of different cameras and want to work with a common format.