imho, vegas has all you could want (well, blu-ray apparently excepted). i produce hd (m2t), sd (avi), dvd (mpeg2), mp4 (web), and have produced variations of them pal<>ntsc, i>p, etc.,
i also own pro coder 3, which is great for batching, but (purely subjective), i can't see any difference between it or vegas when set to best quality, they both do a terrific job.
I use it to produce Quicktime renders, something Vegas does poorly. The freeware Super (c) also does a really good job at H264 mov. Almost as good as Squeeze in many ways except for Sorenson 3 renders which Super (c) does not produce. Those are good when you need a QT video of high quality that is small in file size.
TBH - the last time I used Squeeze, I was not all that impressed. I have used Procoder a few times and I like the results that I have gotten from it. Frameserving can be done as well if I'm not mistaken.
Am very unimpressed with those guys. When I had a technical issue they told me that only the latest version was supported, they wouldn't offer any advice, and that if I wanted help I should upgrade. Hell, my version *was* the latest version about three months before !
That was it for me. I won't go near those guys again.
In any case I always did all my FLV encoding with Flix, and found that Vegas in fact outputted a superior WMV.