Cheers for that. For some reason I was always under the impression that it did this.
It does de-interlace, you put an interlaced display in and a progressive display comes out. I believe all amiga flicker fixers use weaving.
http://en.wikipedia.org/wiki/Deinterlacing Decent TV's have motion compensation, but even they aren't perfect.
For workbench use (and anything that lets you pick a screenmode), you should be able to configure a slow scan progressive 800x600. The indivision will just double up frames and as it's never been interlaced then you won't have interlace artefacts.