That's not the point. See the thing is for 99% of Americans, a 720p HD quality movie is very good. What you get from iTunes that you will never get from disc media is convenience. Imagine you own an Apple TV, iPhone/iPod Touch and a computer (Mac or PC). Once you buy a movie, it's on all your devices. Take a laptop on a plane or iPhone on a plane. Watch it on your 70" TV at home. Watch it on your computer. It's awesome! Not only that, how easy is it to purchase. Just a click and you have it in minutes! Plus you can give it to family, provided that you use one of your 5 DRM authorizations. Lastly, think about how easy it is to play it. Just a click on a menu and you're there. No need to shuffle around with a rack full of DVDs! Can't do any of that with physical media!
Personally I love Blu-Ray but honestly I also have an Apple TV and there isn't that much of a difference. You almost have to view them back to back to notice. The HD on Apple TV is great and will satisfy 99% of the people out there. I definitely prefer Apple TV/iTunes HD any day!
Kan-O-Z
And with this single all-in-one posting, you have nicely articulated Apple's grand strategy for how they intend serve (control) all media content on the OSX platform for the foreseeable future - with iTunes being their sole portal of distribution.
Apple couldn't have PR'ed it any better than you just did here. Their iTunes media portal model model is intended to do exactly as you stated in your post - to deliver you to all of their other "closed loop" pricey toys (hardware), such as their iPhone, iPod, Apple TV, desktop and laptop computers etc..
"You don't need no sinkin' Blu-ray...we'll provide you with our version of HD content (even if it's lower quality but comes Apple premium pricing and obligatory DRM restrictions). You'll like it and come back for more. Why?..because you're locked into the Apple family of products now. Everything you do from here on end (binarywise) will be controlled by the Big A"
I swear, when I read this "news release" that Apple (via iTunes portal) is finally offering some kind of "HD Content", I laughed out loud and had to check the date to see if it was 2006 or something. And with this announcement, we can clearly see why Apple refuses to provide Blu-Ray support with OSX. They are NOT going to allow choice, or anything that would distract Macheads from thinking that all media naturally flows ONLY through their iTunes portal. God forbid.. someone should figure out that you can go and actually buy music, movies, etc., from any other source besides iTunes, that is not only higher quality and cheaper, but is truly portable, and can be viewed, or played independent (outside) of Apple's "premium" products.
I'm a Mac Tech and I'm still proudly and successfully using iTunes 6.02. All I use it for is as a music player and database. Nothing else. And with over 1 1/2 TB's of non-AAC, 320BR+ MP3's, that I've purchased, or downloaded independent of iTunes, it would take about 2 or 3 years just for iTunes 8 "Gapless" crappola to get through my entire collection (if it didn't crash first) - let alone processing the bloatware "Album Art".
I do realize that most computer users (PC & Mac) are content to just sit back and let a company (Apple, Microsoft) serve them up content - with little or no control over the end product - and then look no further for any other options for that content - even if It is inferior and overpriced. Hey, after all it's about convenience..isn't it?
But it's a big, wide world of media out there boys and girls, and if you wait until corporations finally "offer" content that has been available outside of them for quite awhile now, well...
you can passively pay through the nose for less and still remain on the cutting edge of... yesterday!