Several years ago I was doing a ton DVD work for a media company and I came to the conclusion that it was a workflow question. If I was making a DVD of an editing project I never went out to tape but if a client sent me a DBeta or BetaSP I used a Sonic hardware system because it was much faster if I was starting with a tape.
Compressor does a very good (if not great) job when you are sending it good clean video and you can keep the bitrates up (5-6.5Mbps) there are now 2 recommend options BitVice and the new Cinemacraft ($800).
The first thing I would do is make a test DVD using compressor. For the best possible encode From FCP timeline Export to Compressor, make a CBR 6.5 Mbps preset, encode the audio to ac3 .192, burn a DVD and test the quality of the video on Macs, PCs and TVs. If you like it stop worrying. In the creative field you can always do thing better, and better normally means more money. I would but the savings of the encoding into better production or more time to color correct. FCP, DVDSP and Compressor can do a great job, if Compressor lets you down try BitVice, if you want to spend the money and get the best buy Cinemacraft. But trust your eyes, if Compressor gives you good results don’t look back.