No, you're not understanding it, spwace. You're overlooking the fact that they are marketing this as decidedly inferior to the HDTV that they also provide.
Bell ExpressVu actively markets HDTV, far more agressively than any other satellite provider. Despite only having two Hi-Def channels, they manage to bring their subscribers almost all the U.S. network HD programming, plus HDNet hockey and lacrosse, plus movies, plus PPV. Next year, when their new satellite is in service, they will be providing more HDTV channels than any provider, cable or satellite, in the world, and providing something Americans can only dream of -- East and West coast HDTV feeds of the major U.S. networks. Considering that they have a mere 7,000 HDTV subscribers out of 1.2 million, that's one hell of a committment to HDTV, especially considering they don't charge anything for their non-PPV HDTV content.
And yes, they do show some HDTV programming downconverted to SD in addition to also showing it in HDTV. It is clearly labelled as such in the program guide. You will see CSI, for example, listed as CSI -- CBS HDTV Broadcast and CSI -- CBS HDTV converted to SDTV.
They are not misleading anyone, nor are they trying to foist off an inferior solution as an equivalent for true HDTV. They are simply providing their customers who don't have HDTV the best picture they can, while doing everything they can to boost true HDTV.