I'm sorry, apart from politics (or someone's over inflated ego), I don't see why this is an issue at all.
When you go the cinema, the STs are placed in the picture. End of story, nothing more to discuss. Why should that change just because the film is being transferred to home video?
Yes, in the days of SD video on DVD, the STs may have been easier to read on the black bars. In HD, text is perfectly legible in the picture just like it is in the cinema.
Lets go back to SD for bit. The first player (possibly the only player at the time) to shift STs was the Samsung I used to use. The truth is, it didn't actually shift anything. On an XY axis plot, the STs never moved. The image behind was vertically stretched and this gave the impression that the STs had been moved up into the picture. This is why the STs appeared stretched in the screen grabs I did a few years back (of STAR WARS). The anamorphic lens was optically expanding the image including the STs.
With a BD, and either the OPPO or Phillips players, the STs do indeed move up or down and the end user decides where they will go. So much for Artistic Intent.
With Folded Space (and my image below), there is no need to shift the STs any more. The Studios will have the final say as to where they want them and the system will work around that assuming Folded Space can be encoded as 2560 x 1080 pixels. The following should show the options for the user and it won't matter if "artistic" decisions decide the place the STs in the black bars of the letter box mode or not. For reference, the left tip of the T in SUBTITLES should be at 800 x 600 pixels on an XY axis from the top left of the image in all the cases except the ANAMORPHIC example where I have horizontally squeezed the text to simulate ANAMORPHIC MODE.
MODE 1 [Image 1]
FULL SCOPE at 2560 x 1080 which will map 1:1 on a display with 2560 x 1080 pixels. NB: The current Phillips 21:9 can not map this image 1:1 it can only take 1920 x 1080 as an input.
MODE 2 [Image 2]
ANAMORPHIC WIDE SCREEN and the version all us A-lens users want. This is what the anamorphic mode would look like mapped 1:1 on a 2560 x 1080 display. The image itself would be 1920 x 1080 and sit in the middle of 2560 x 1080. I've added the back side pillars to show this. The trick will be mapping the centre 1920 x 1080 at 1:1 on a 1920 x 1080 display because when I made this image 2560 x 1080 and displayed it, my system scaled it to be letter boxed. So maybe the decode chip in the player discards everything outside the centre 1920 x 1080 image to allow 1:1 pixel mapping.
MODE 3 [Image 3]
CENTER CROPPED this allows the screen of a 16:9 (1920 x 1080) display to be filled without black bars. The sides of the original image would be cropped off. You can see this in the planets missing that are visible in Image 1 and this mode would keep all the 16:9 users that don't care about OAR very happy.
MODE 4 [IMAGE 4]
LETTER BOXED This is who it would look on a standard HD display allowing backwards compatibility with all current HT systems.
So based on the above, there is no where else for the STs to go in the first three of the modes of Folded Space.
Disclaimer: This post is based on my understanding of the technology and may not be 100% correct.