DVDs are at most 850 x 480 (hint: less than Apple TV, iPad, iPhone 4, etc.)
A.
The reason we need blu-ray in macs and/or apple tv... I don't get why the hatred for blu-ray (although I like hd purchase and rentals for lots of things, but things I really like I collect on blu-ray.) Also I have a collection that I can't play (easily) on my macs, I wonder what Jobs uses for his home theatre, I'm sure he uses blu-ray movies...