I wouldn't say H.264 is *horrible* for editing. It looks decent enough at higher bitrates and can be easily converted to more edit-friendly codecs. It's IMHO the best tradeoff between size, quality and compatibility- which is probably why so many cameras are shooting to it as a format these days.
Is it as good as say Animation, Uncompressed or ProRes? No of course not. But the OP should probably define what's most important- portability, ultimate image quality, cross-platform compatibility- etc. BPAV folders are fine but good luck getting a majority of people to figure out how to use them...
Noah
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