As a general question, wouldn't it be better to detelecine before doing the final encode?  That way the quality is a constant depending on how munch time you want to dedicate to processing the video before hand.
I know there are detelecine filters out there that produce amazing results if you take the time to tweak things, but they can be incredibly slow.  If you pay that cost up front so much the better for the end user, right?
PS- Sorry about the horrible formatting nonsense, there doesn't seem to be any way for me to get rid of it...