I second this. It would be really nice if Openshot could automatically
convert the files to more usable resolution/format/codec for edition and
use the original files during export.

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https://bugs.launchpad.net/bugs/595538

Title:
  (Feature) Working with full HD video files is slow, even on modern
  computers

Status in OpenShot Video Editor:
  New

Bug description:
  (This is a feature request)
  When working with high quality source files, the user interface gets slow and 
hard to use. Previews are slow, sometimes almost unusable and the application 
may even crash as a result.

  A great feature would be if one could convert the source files to some
  nice light "working format" (lower quality, smaller frame sizes etc),
  so that timeline editing goes fast and easy, and that one, when it is
  time for rendering, could choose to use the original files so that the
  rendered video becomes high quality.

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