More peanuts from the gallery...
In general, hard drives are cheap. They are a fine place to store your files and as some have stated, redundancy or multiple copies makes a great deal of sense here.
CD, DVD and Blue Ray. Contrary to what is stated, they can be used as there are a few select makers that offer the discs with intent to store as in "archival discs." When the newer M-disc (50 gigs and perhaps larger) are made to be archival then we really have something truly excellent to work with. The key to using archival discs is to have a successive burn plan. This means you may consider once a year burning new discs or every 3 years etc. Though the discs may be intended for 10-20 years and longer, it is about the multiple copy facet as we can't always be sure something will not get damaged or was a defect out the door.
Handbrake and other tools. Sorry guys, I'll never understand why anyone pushes these compression tools. Let me start by saying those that do still photography know that a 16 mp camera normally produced far more information than say a 4mp camera. Both might produce a RAW file that is all the data collected in the image but one has more. Using Handbrake is akin to making a jpeg from a RAW file. - Simply stated, it is a lossy format and thus information is lost and cannot be restored from the jpeg. Similar can be said with using Handbrake (unless you are simply converting the file format only and in that case, there are far better tools). H264 is common for compression and if one is interested in compression with both detail and size in mind of the final file, then some investigation into H265 is in order.
My take - I would try to get the DV files onto a computer with a decent program to handle some edits. Remove all unwanted sections, create a directory with how you want to set up your files (dates, topics etc.) and be ready to transfer to whatever medium you desire. In my case (mostly photo work), I store images 3 ways - single drives, NAS and disc. The discs are kept in a safe cool and secure location off site. I have some discs that are more than 5 years old and are in excellent shape. Then again, I have commercial DVDs that are way more than 5 years old in excellent shape and yes, one disc that was trash in less than 2 years of play. One thing can be said for sure, there is no absolute perfect method of archiving your movies, but its a matter of reducing risk of damage, degradation of the medium simply by time and more.
For now, consider hard drives as a cheap means to an end and pony up a few dollars to get started. Go for 2 drives if you can.