Personally I would stick with the two methods you describe. Use the method you are currently using to transfer the VHS tapes and you will have to buy a cheap Hi 8 camcorder with an s-video out socket to give you the higher resolution compared to composite video, to transfer the Hi 8 tapes.
Does your digital camcorder have an s-video in socket? I have one of the older Panasonic models (digital) which I was going to sell but it has s-video in/out and composite video in/out so I will hold onto it and use it as an analogue to digital convertor. You could possibly pick up a Hi 8 playback deck, Sony made a few but it would be a lot more expensive than a Hi 8 camcorder you could pick up on ebay. How many tapes do you have?
If you wanted to look at some type of capture card or breakout box (connected by USB) with the analogue sockets on it, you could try places like Jessops or Curry's or Dixons websites to see what they have in stock, I haven't look for any of those devices recently but there seems to be fewer of them now compared to a few years ago. Pinnacle is a company to look out for.
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