Exactly, just like HD-Mpeg2 is converted to the HD-Cineform Codec for frame accurate editing. Although simple hd-mpeg2 editing doesn't come out all that bad.I'd have been very surprised if it allowed you to edit in that way, even the higher end editing cards don't fully support it yet. I for one would never buy a camera that uses this format as it's highly compressed and therfore if you want to edit it you either need a very high end PC (dual xeon) to allow you to edit or you'd need to convert into a different format to edit properly. We build video editing systems for big companies and so far have told people to steer clear of this format and to stick with the standard mpeg2 HDV cameras
Yes, persons buying these cams need to be aware of what they purchased and the non-editable format they record in. To edit the videos one needs to convert them first to an editable format.
Remember in the 90's when mpeg2 on dvd was the thing, all software companies were scrambling to write the software to edit mpeg2 video. Now that's old hat and it's into the future.
It's the reason I bought a HD cam that records in the Mpeg2 format, the avchd format is similar to highly compressed divx files. Great for distribution but a bear to edit.
I've also noticed that the motion in avchd video isn't great, looks more frame-based to me. That could be a fault of my players though.
