DV widescreen is a display convention. The video is at the same resolution as 4:3 DV.
I don't think there is a way to have VT flag live DV output as widescreen, so from there it's a matter of manually adjusting whatever device you're displaying through to tell it that the video should be shown wide.
But that seems incongruous with the fact that the project PREFERENCES is set up as NTSC 16x9 DEFAULT FORMAT. (I'm sure NewTek designed that setting to do more than merely define a widescreen shape for the VT-Vision display).
If not, I'd imagine many NewTek users would really be wowed by having a patch that allows one to produce an NTSC (or PAL) Widescreen DV tape master direct from the timeline, and/or after a render, via Firewire in all VT-EDIT (in VT ver. 4.6) and later editing modules.
VT-EDIT in version 4.6 is ripping fast, and shouldn't be considered dated, especially for creating Internet content; and for modern editing tools as cool as NewTek's are, DV 16x9 PAL and NTSC widescreen are worthy of being considered a basic digital output option.
Here's hoping this little 2 cents worth is well spent.