As you just said, the artifacting happens even with a QuickTime EXPORT. How does that imply anything OTHER than it being an export problem?
If the original footage is clean and imported as DV, and if it looks OK throughout the entire editing process and then suddenly looks not OK after the export how could it not be an export problem?
iMovie '11 gives three choices on export (five if you include the two HD versions that are greyed-out when using SD 4:3 content) and the highest quality one, designed for iPad, still blows out loud. I have no idea what export setting you are talking about, only that the highest-quality one among those available *****. HandBrake does not have this issue, StreamClip does not have this issue, even earlier versions of iMovie do not have this issue. You will wait for a good encode with them, but in the end you will get it. That is much preferable to a hurry-up down and dirty quick encode that ends up looking like dried hammered dog feces.
and once again, I am not sure why you keep harping on the pixel map. The pixel map has nothing whatsoever to do with this problem, which is as artifact problem. Scaling issues do not create quantization error artifacts, severe quantization used in heavy compression is what causes these artifacts. Not only that, but as I said before, the pixel map on export (960x540) is larger than the pixel map for import (640x480) for the content I am seeing this on, so it would preserve the effective resolution and cause very little artifacting if any. If it did cause artifacting at all, it would be very limited and of a very different kind than we are seeing here.
I have decades of experience working as an engineer for major TV networks in the areas of compression, transcoding, non-linear editing, digitial transport and delivery, and signal evaluation, at a minimum. I think I know a little bit about how to deternine where a technical problem generally lies in this particular arena, and in my professional opinion, this particular time, it is in the export.
What are your credentials?