Hmmmm. That could be somewhat subjective. Both are compressed, but the compression methods are different. One thing to note though is that Digital 8 (which is the same signal as DV) is compressed to 25mbps for the video and MPEG 2 (which is the compression used on DVDs) maxes out at 9.8mbps. This would indicated that MPEG 2 is compressed at least 2.5 times more than DV. Since quality tends to suffer with more compression, DV is potentially better quality.

The other difference is that DV uses colorspace compression (throws away some color information, particularly red detail) while MPEG 2 does not. This means that even with it's higher level of compression, MPEG 2 can maintain more detail in the image especially in high contrast color edges. Unfortunately, in order to obtain higher compression, MPEG 2 is willing to sacrafice more detail overall than DV does.

Of course, if you tape your original footage on Digital 8 and then create a DVD from this material then your final video has suffered both compressions and will be worse quality than the original Digital 8 tape. Maybe not much worse, but it will suffer some (possibly not noticeable) degradation.

Chances are, in a practical aspect, if you were to play the two side by side on identical televisions, you'd probably never notice the difference.