You can call me paranoid, but I think that this is a sign of the MPAA's pressuring to keep all home video presentations under 800 X 600 resolution, and kill off HDTV.
It would be a hard sell to get people out into traditional theaters (which many will be converting to digital projection) if you can get the same quality picture at home with a HD-DVD player (which they are also trying to prevent from being released), and high resolution digital projector.
So the MPAA has been working with the cable companies to keep the maximum digital movie resolution to 640 X 480p, offering cheaper SDTV displays, and institute DVI/HDCP, DFAST, and 5C/Firewire encrypted DTV connections to change everything to pay-per-view. And have DVD stay the highest resolution media for home viewing.
Sure, most people only watch DVDs at home, but three years ago most people hadn't even heard of DVDs, and all watched VHS tapes, so no one needed higher resolution or widescreen displays then.
Likewise, most people watch TV using the TV's speakers, so would you rather see reciever manufacturers stop supporting DD 5.1 or DTS audio because many people won't use it, and it's cheaper?
Or do you want the product with the best quality and features to drop in price, only to be be replaced by a newer product with better specs, quality and features, for less money.
If this is a move to create low-cost (sub $1500) entry-level RPTV or FPTV filler products to entice people who would buy a tube TV, or NTSC-only TV, then I think it's great.
But if it's lowering the standard to draw us away from wanting HDTV at home, then it's counterproductive and short sighted.
For those of you that have seen HDTV, or even good scaled DVDs on a higher resolution display, you know what I mean.
-Dean.