Even the cheapest working digital camera wins since DV still is essential some NTSC or PAL with all of 525 lines (NTSC) and maybe some 320 pixels on each line.
If your printer is 300 dpi, that may work fine for a 2 inch square picture...
The MPEG or such isn't a factor here.
About NTSC -> http://archive.ncsa.uiuc.edu/SCMS/training/general/details/ntsc.html
What would produce a better picture for a photo album? A high quality digital video, when played back is paused at the right time and that paused frame is saved and printed?
Or the same moment in time captured on a good digital camera and printed?
I'm not talking about the digital still or camera function on a camcorder. I'm interested in the quality of a a single frame from a recorded movie in the highest quality (not mpeg-1 or similar web based recording) compared to the quality of a good digital camera.