Yes Premiere can edit HD videos. There is a learning curve, but it is quite powerful software so you will be able to do most editing tasks with it once you have practiced a bit.
Whether you like it or not is a different story.
If you go to Vimeo.com you can download all sorts of HD clips. (You need to register in order to see the download links.) There are other sites where you can download HD clips as well, but you probably only need a couple of clips to check out what Premiere can do.
What Premiere does is that it converts to an editing format eg, .PSV when videos are imported. You can try software like pinnacle studio that natively edit hd (.mts/m2ts) for best possible quality and possible shorter learning curve.