What's the best way to import DVD into iMovie 11?

Not really, you've utilised the quickest, easiest and cheapest route available with doing it with Handbrake. Don't bother trying to find another piece of software that will do the job better, Handbrake is really the best when it comes to ripping and encoding Apple friendly formats. Thanks, hope this helps.

Handbrake is free but not the most user friendly. Here is a great tutorial on using Handbrake: http://www.methodshop.com/gadgets/tutorials/handbrake/index.shtml

My personal favorite (for ripping movies for playback on your Mac) is MacDVDRipper Pro ( http://www.macupdate.com/app/mac/31118/mac-dvdripper-pro) which actually rips the disk image to your Mac retaining the menus and extra features you might have on the DVD. Then you can mount the disk image on your Mac and use it like a "virtual DVD". This software is not free though.