But it's obviously not working is it given the example I've posted, the studio/Apple just needs to look at the resulting file and think to themselves that looks crap lets up the bitrate and get it looking good for our customers, good god it not hard.
You can argue the toss all you want, it wont change the fact, that file is crap and not fit to be on sale.
Yes, it is working. Not sure how things are in the UK but in the US, once I break the seal on the DVD package it's not returnable unless the disc is unplayable. They don't care if I am disappointed in the video/audio quality, just think the story line sucks or whatever.