The older movies' video are mostly in MPEG-2, but the newer movies are almost always in VC-1 or AVC (H.264). All come with at least Dolby Digital, True-HD, DTS, DTS-HD or LCPM, and have multiple languages and subtitles. I'm sure that if Apple were to start serving up 1080p content you'd likely only get AVC with Dolby Digital AC3 (no True-HD) and maybe captions wrapped in an MPEG-4 container. I've found that transcodes from Blu-ray m2ts files at 14 mbps bit rate the video quality is excellent, but at 12 mbps there is noticeable blocking.
That's not true. Those m2ts files that are over 30 gb are usually encoded in MPEG-2 (poor compression) and have multiple uncompressed audio tracks (i.e., True-HD, DTS-HD) in multiple languages that dramatically inflate the m2ts file size. You wouldn't see all those audio tracks in consumer downloads since they will be localized for the country of distribution (for most nations).
Most of the Blu-ray videos I have are new releases and if encoded in AVC they are quite small. Of course, they're all in m2ts containers, but the new titles almost always have AVC or VC-1 encoded videos. What kills the file size is the inclusion of True-HD and DTS-HD, and the additional language tracks. Attached are some of mine (m2ts) that have only been remuxed (video) or had the English AC3 or DTS cores extracted from True-HD or DTS-HD, respectively. No reencoding at all. You can see their files sizes range quite a bit and I only have three that are larger than 30 gb. Most are around 18 gb and the average is about 20 gb. The m4v files are Blu-ray rips transcoded with Handbrake into MPEG-4 containers at 1080p with AC3 DD.