Well, mini-DV *is* 720x480 digital. If you're using Vegas to move them from tape to your HD, then, yes, you'll have transferred them at their native resolution & compression, which is good.
Yes, rendering out as MP4, probably with the MainConcept codec (Vegas Pro includes this codec, not sure if Vegas Studio does?), at a bitrate of about 1200Kbps will shrink those files right down, will be very compatible, and should be visually lossless.
Of course one could debate the bitrate, 1200Kbps (1.2Mbps) is perhaps a little generous for standard def, but you're still shrinking the original by a factor of about 20. Try it on some of the most motion-intensive footage you have, and see how you like it.
If you are going to edit, keeping the original AVI files is best. Hard drives are cheap...
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