Does DVD support non-interlaced formats (576p)?

Question

I have an old VHS homevideo that has been converted to DVD (PAL-576i) in a photo-shop. I have decided to add some menus and edit some things in Premiere Pro CC/Encore and maybe convert the aspect ratio from 4:3 to 16:9 (by adding black bars in the sides) since it probably will be shown on widescreen hdtv's before burning copies to the rest of the family.

Since I will be working on it, I thought i might as well try to remove scan-lines by de-interlacing it in the process, to improve viewing on non-CRT displays. I know some DVD-players have progressive scan capabilities, but some doesn't and I don't know which type of player will be playing the dvd.

So... I guess my question is:

"Will it make any sense to de-interlace/re-encode the video to 576p, or will the dvd-players not care at all?"

Here is a file analysis output of one of the .vob files

 ***** Analyzed File Results *****

*** General Parameters ***
- Name:  VTS_01_1.VOB 
- Container:  Mpeg Program Stream 
- Creation Date:  2006-01-01 01.00.00 
- Size:  1 
- Duration:  10s 753ms 
- Bitrate:  798 Mbps 
- Fast start:  Not available 
- Encoding Library:  Undefined 
- Encoding Application:  Undefined 

*** Video Track Parameters ***
- Format:  MPEG-2 Video 
- Size:  1 
- FourCC:  0x10000002 
- Track number(s):  0 
- Bitrate:  Max.: 9 282 Kbps 
    Average: 782 Mbps 
    Min.: --- 
- Frame rate (fps):  Max.: Undefined 
    Average: 25.000 
    Min.: Undefined 
- Bitrate mode:  Variable 
- Encoding profile:  Main@Main 
- Resolution:  Undefined 
- Width (Pixel number):  720 
- Height (Pixel number):  576 
- Pixel Aspect Ratio:  Undefined 
- Display Aspect Ratio:  4:3 
- Chroma subsampling format:  YUV 4:2:0 
- Standard:  PAL 
- Interlacing:  Interlaced - Top Field First 
- Encoding library:  Undefined 
- Additional Parameters:  BVOP: Yes 
    Matrix: Custom 
    GOP: M=3 
    Bits/(Pixel*Frame) ratio: 75.438 

*** Audio Track(s) Parameters ***
*** Audio Track #1
- Format:  AC3-A52 
- Size:  499,7 KB (0%) 
- FourCC:  0x2000 
- Number(s) and language(s):  189 (0xBD)-128 (0x80): Undefined 
- Details:  Undefined 
- Profile:  Undefined 
- Bitrate:  384 Kbps 
- Bitrate mode:  Constant 
- Resolution:  16 bits 
- Rate:  48.0 KHz 
- Channel(s):  2 (stereo) 
- Position:  Front: L R 
- Encoding Library:  Undefined 
- Additional Parameters:  Not available 

Answer 1

I had this issue come up a few months ago, and what I found out was that the video stream frames, irrespective of source properties (field or full frames), are stored as field pairs in authored VOBs, although the scan mode and order is correctly noted in the metadata for benefit of players.

I've had multiple DVDs of progressive source accepted by Amazon Createspace. So you can go ahead and deinterlace.