XBMC (and most other systems like NMT) can read most formats - direct rips/copies of the discs are fine. However, I know that XBMC has trouble with native ACVHD files. So a conversion would be necessary. I think NMT can handle the files though.
Perhaps another perspective would be to have the "raw" source authored as Blu Ray, with the DVD disc bound media offering being the "scaled" down version. As I understand it, this would complicate the authoring process (especially menus) a little. But, I think a fair number of folks these days would prefer to have the demo material at full force - especially if they have the same material already in their media server and could pull it up fairly easily using bookmarks, etc.
Either way, I'm happy to do my part.