Comparing snapshots is essentially useless. Video compression is based on motion from frame to frame.
I've seen motion too. They're CLEAN.
And Blu-ray isn't overkill. In fact, in some scenes with heavy motion (i.e., rainfall in movies like Sin City), I've seen hints of macroblocking.
I guess BD sucks then.
I've done enough Final Cut and Compressor experimentation to know that higher bitrates are essential to natural looking video. Blu-ray isn't perfect--AVC and VC-1 codecs only go so far--but it's the closest thing to the theatrical experience.
I think most theaters suck (my setup looks and sounds better than most), so I guess you are aiming low.
I've seen Apple HD rentals. They are most certainly not "clean looking." They're adequate for 24 inch monitors and 42 inch TVs, but can't look good beyond that size.
You've just proven you don't have a fracking clue WTF you're talking about. Seriously. I've got a 93" screen here and it's perfect looking. I mean PERFECT. If you are seeing problems it means you (like most other whiners that complain about it) have a CHEAP AND CRAPPY SCALER in your 1080p set. This has bee explained many times on here, but apparently people don't read the threads and bring up the same BS over and over again.
In other words, if you watch 720p on a 1080p native display and it has a crap scaler in it (like most flat-panel sets do that are sold at places like Best Buy), you end up with a blurry picture or other artifacts. You can see this really easily on a PC by playing a game on a monitor at less than native resolution. Heck, look at text on a lower resolution setting. It will be blurry and crappy looking. But try that on a monitor or tv or projector with a high quality scaler. It's night and day. I have two 24" LG monitors in my den and one was $600 and other the $280. Suffice to say, the $280 looks like crap on any resolution other than native. The $600 one looks quite good at all resolutions (still not perfect except at native, but MUCH better). It's the quality of the scaler.
So if you watch 720p on a crappy retail 1080p TV, of course it's going to look bad. Try watching 720p on a 720p display. It's perfectly clear. In fact, most HD content out there except for Blu-Ray is NOT 1080p so you're going to get the opposite problem on a 1080p set. 720p broadcasts are going to look vastly inferior on a 1080p set with a cheap scaler than they will on a 720p set. That even applies to 1080i as well (without 3:2 pulldown).
Whatever you THINK you're seeing with ATV is due to your set, guaranteed because it looks clear as a bell here on my high-end 720P projector (one of the top-rated projectors of its day with a quality scaler (the reviews raved about how perfect 480p was on it despite it not being native), native 720p and an excellent conversion of 1080i and 1080p down to 720p. NOTHING looks 'bad' on this projector except what is bad to begin with. I have never seen an ATV movie with any kind of noticeable visual distortion. I have seen TV shows with issues, though and their SD content usually sucks hard. But 720p movies have been top-notch. I've watched cable HD movies that have been HORRIBLY distorted with blocky-ness and other issues and I've never seen that on a 720p iTunes movie yet.
And I don't know about you, but I'm not fumbling through my DVD/Blu-ray collection. It's easy to find what I want (that's why they have labels on the spine). And my PS3 boots up discs in around 10-20 seconds.
Excuses for an outdated/outmoded system. I guarantee if you lived with a hard drive system where quality wasn't a factor for a few weeks, you'd never want to go back. Those that say it doesn't matter haven't really tried it.
Sounds to me like your simply impatient. Like the complainers on Amazon's review page for the Lord of the Rings Extended Blu-ray: "I hate that they put the films on 2 discs each!"
Call it whatever you want. I love my setup. I hate discs now. Don't worry. You don't have to watch it.
