Standard camcorders record interlaced video, i.e. half the lines in one field and the other half in the next field. NTSC video is 60 fields/sec for a combined 30 frames/sec, lower field first.
Your computer display is progressive scan, which displays all lines for each frame. Interlaced video looks awful on a progressive scan display. Most pc players have an option to deal with interlaced video on a computer display.
If you're generating video for a computer display, then you want to deinterlace it. If your ultimate destination for your video is edited videotape for playback on a television, then you want to keep the video interlaced.
If you reverse the field order, the output video will look really bizarre, about what your web picture shows.