Exactly right Strudel, storing the data is the tricky part. I anticipate handling the files in several ways. First, I would like to incorporate the cost of the sd cards into each project. This should become more and more cost effective as time goes on. Right now 16 gb cards are running about $45. I think two of these would cover a day of video on the lower settings. I'm thinking of going this way just because it looks like tape is on the way out and AVCHD/H.264 with cards are on the way in. I like the idea of having a camera with no moving parts.
I would also copy the files to a hard drive setup like the drobo or a raid 1 device from OWC. As they fill up, buy more space. I believe that software is available to ensure conversion from the native file type to an editable version for Final Cut. I wish I could find out exactly what kind of AVCHD comes out of that Panasonic camera. Converting to AIC blows up the file size by at least 4 times, or so it seems. But as I mentioned before, I know I can edit H.264 directly in FCE, so I'm not sure why the conversion is necessary. (Other than it is not an ideal format for editing, but it would seem basic cuts and intro frames shouldn't be too big of a deal).
And yes, the depos could be compressed and saved on DVDs for each two hours of footage. I imagine that litigators would probably want their trial clips provided on cds, depending on the tech available in the court room.