LOL i always get a kick out of people who have no idea what MPEG2 is.
its a VERY VERY CPU intensive compression method. It takes a LONG time to make anything MPEG2 (compared to making something 3ivx etc) its just the nature of the beast.
As for taking a DVD off the shelf at Best Buy and bringing it home to edit the videos on the DVD... thats not going to take 10 minutes. Thats a laughable amount of time for video work of any kind.
VIDEO_TS is a folder containing .VOB and .BUP files etc. This is part of the DVD Video standard that lets you play this DVD on any DVD player.
To take that VIDEO_TS folder and make it BACK into the original videos is not easy. YOu have to decrypt the .VOB files one at a time, and then you should have MPEG2 files. That will take some time.
What do you want to do with the MPEG2 files? The only thing that can play them without rendering is DVDSP (quicktime and FCP can play them, but its so slow to load etc) If you want to edit the MPEG2 file, you are out of luck if speed is key.
Video is not a quick thing, ever. It takes time to shoot, time to capture, time to edit, time to render, time to encode and time to burn. You can do any of those steps in under 10min (unless its a 30s file...)