Mini DV vs DVD ram cameras

[Monstr]

Hello......
I'm new to the forum and I want to learn everything i can about video....editing....cameras....software. I have been shooting stills for 25 years but I am new to digital video. Which brings me to my first question. I purchased a Sony TRV 950 when it first came out. (Big mistake since it has dropped in price dramatically since introduction.) But anyway, my buddy bought a Hitachi DVD ram camera for 1/4 of the price I paid. When viewing recently shot footage and comparing images on a regular TV set, the images from the Hitachi are very close in res and almost better looking color. What gives with that? Did I really screw up by spending so much on a 3 chip?? Or should I have gone up in price from what I spent to a different model of camera for semi pro applications which I would like to get into. What do you think of this camera and, If the latter is true........what camera would you recommend?
Also....what would you think of my editing software choice between say....Vegas or Pinnacle??

Thanks for your help.