Uh, I don't know.
I just tried playing with Vegas to replicate what was shown using Adobe in that clip - the zoom/crop to get rid of the other diver is more difficult to do seamlessly, but fixing the flash problem doesn't look like it would be hard at all. I don't have a source DV file that has that precise problem, but I tried playing around with inserting a single frame "on top" of the timeline, and had no trouble doing it.
The garbage matte is indeed missing, but that's not all that big of a deal to me. I'd like to have it, but I suspect VV will pick this one up next time around, given that they're pretty much neck-and-neck competitors with Premiere.
The authoring package isn't the best in the world, I'll give you that. But it DOES handle AC-3 5.1 imports just fine, and while the rest isn't wonderful, does the rest of the stuff really do much for me? Not at present. Might it in the future? Yes, but if it does I'll deal with that then, and I can do so with a dedicated authoring product if I really need to. If I get THAT serious I probably need to cut DLT masters for pressing purposes 
There is also the cost issue. Vegas+DVD can be had for under $400 for a legitimate, non-academic license. Try THAT trick with Premiere and its DVD authoring add-on!
As for the rendering quality, its top-drawer. The Main Concept CODEC is very, very nice. Its also very adjustable if you need it to be, which can be a big deal in certain (non-DVD) circumstances.
One of my big complaints with Premiere is that it simply doesn't make sense. Figuring out how to make things work the way you want is NOT trivial, nor logical in a lot of cases. Vegas doesn't have that problem.
I'm less sold on the DVDA part of the Vegas package, but the video editing portion is IMHO simply outstanding. DVDA could use some help, but even so, its very usable, and I've found something remarkable out about it - it produces disks that, on the same media, will read on set-top boxes that my OTHER authoring packages will not! Apparently some of those authoring packages play just a bit fast and loose with the rules in terms of how they actually lay out and burn the disks....
I love Photoshop and have been a loyal Adobe still picture manipulation customer for YEARS. I'm a LOT less sold on their video products; IMHO they simply don't make much sense in terms of how they are laid out and operate.