That is a bummer. I hoped they would address this issue in 09 but I forgot that Apple has tendency to not care too much about aging technology. 😟
Perhaps it is because iMovie08/09 relies on core video and quartz engine so much and not solely on Quicktime as iMovieHD. It is my guess only, but it is much easier to passthrough DV as is in iMovieHD because it was written with DV in mind.
If you open up contents of an iMovieHD project, there is a small size quicktime file that contains the entire cut of your project. It is a reference movie that has cut information and points to the source and rendered clips used in the project. So when you cut movies together in iMovieHD you are simply coping and pasting the sources into this reference container. This is why all the transitions and effects have to rendered to DV all the time even if they could be previewed in realtime in much higher quality, in which case core video is used. When exporting iMovieHD uses all the original source videos, unless rendered for any effects or transitions, so that the highest quality is preserved. The downside is that you cannot directly use core video or quartz engine in the timeline to enjoy realtime rendering, and you cannot mix up different format movies in one timeline without conversion.
It seems that iMovie08/09 works much more sophisticated internally to enable all realtime workflow and multi format timeline. It's probably much more complex to source back to original DV for exporting, and if they didn't do it for 08->09 upgrade the chance is getting slimmer that it will ever bring it back. :-/