There are a number of tricks to make it possible. For example, doing 720p at 30fps or 24fps is much more manageable, and is actually perfect for certain shot on film shows and movies.
Taking 1080i and reducing it to 1280 x 540 at 30fps is also a good first step. The 1280 because that's the native res of many tvs today, the 540 for trivial deinterlace and cutting the load down. Then you can try to do some rtjpeg or mjpeg to get it down small enough to write to hard disk reliably. You would probably want to get below 20 megabytes/second (160mbits) which seems doable with those compressions done with some existing chips and perhaps an fpga. Then you would expect a second pass by the computer to convert to mp4.
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