Hi TrainGoon,
DCC is a command control system developed in the late 80's by Bernd Lenz. Mr. Lenz made his system available to the NMRA and NEMA (European equivalent of NMRA) and all other manufacturers free of charge so long as they all agreed to publish their interface protocols. It turned out to be the right technology and idea at that moment and DCC became the "standard" command control system in all segments of model railroading except 3-rail O.
In the early 90's when DCC was becoming popular in other scales it gained little traction in 3-rail O for several good reasons. One, 3-rail O traditionally has had very large current draw with lots of lighted passenger car, big motors, and accessories. The cost of DCC is directly related to the amount of current that can be provided. Even medium sized O gauge layouts would need over $1000 in DCC hardware to duplicate their power capacity. Two, DCC requires the motor to be insulated from the frame of the locomotive. In 3-rail O most of the locomotives ever made used a chassis ground to supply power to the motors. Insulating the motor would require a fair amount of work to modify each locomotive and in many cases required a complete replacement. Third, making such modifications is anathema to collectors who seeks original condition. Collectors have always had a larger presence in 3-rail O than in other scales and are a major market driver. An operator who modifies his locomotives has to accept that he is destroying much of his resale value.
In response to the market Lionel and MTH developed their own command control systems that were less costly with high amperage draw and backward compatible with conventional AC track power. Lionel's original system, TMCC, used the DCC command codes but employs a different technology (low power RF) to communicate the commands. In order to use the DCC command codes Lionel was required to publish their interface protocols. Lionel's newer command system, Legacy, continues to use the RF transmission technology, but expands the command codes. Legacy is not bound by the DCC regulations and Lionel has chosen not to publish the interface protocols. MTH developed its own command control system, DCS, with unique command codes and two-way communication through the rails. MTH has never published its interface protocols.
DCS is unique among the three systems in that it is compatible with both DC and AC track power. MTH offers locomotives with ProtoSound 2 and/or ProtoSound 3 electronics in 3-rail O, 2-rail O, No.1 gauge, standard gauge, HO 2-rail, HO 3-rail (Marklin), and soon in S scale. ProtoSound 3 locomotives are compatible with both DCS and DCC.
You said in your first post that your O scale layout has 3 MTH sets and one Bachmann. To get the most out of your 3 MTH sets you will need a DCS set (#50-1001 - $280 street price). That includes a remote control and TIU (track interface unit). As you move into HO you could use the same DCS set to run both your O and HO layouts, but you would be limiting yourself to only MTH HO engines. MTH makes some of the best locomotives in HO and is the only manufacturer with consistent speed control, but they are also one of the higher priced manufacturers. If you purchase HO DCC equipped engines from other manufacturers you will want to get a DCC system. Personally, I'm very fond of NCE's DCC systems. You can get an entry level DCC system with wired remote for around $150 and a wireless system for about $450.