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This is nothing new. There has been speculation of this since the iTunes Extras/LP were released. iDVD and DVD Studio Pro are both in due for an upgrade, and this sounds like it. Names of the programs will change obviously.
 
I mean actual authentic DVDs that I've purchased. I'd like to rip the files to my computer and disassemble them; menu images and background audio, video, chapters, special features and everything else that you'd find on a DVD.

I don't expect Apple to include this, but surely there is a way to extract this information, convert it, if needed, and piece it back together as an iTunes Extras file.

I'd love for there to be a simple way to do this, just as it's simple (and legal) to rip and convert a CD that I've purchased to a lossless format on my computer. I don't know why DVDs should be any different.

Use Handbrake to get the video and then use iDVD to burn it with chapters and the like...
 
Since iTunes LP is web-based, couldn't Apple let people export these menus to their MobileMe videos through iDVD?
 
Names of the programs will change obviously.

Umm yeah, like iTunes’ named changed when it started supporting TV shows, podcasts and movies?

DVD Studio Pro and iDVD’s names will remain the same for brand recognition purposes. Maybe they’ll get an “HD” appended to their name. Personally, I think this rumor is bogus simply because it mentions iTunes LP only and not iTunes Extras. If you were going to start a rumor about future features, you could at least get the appropriate feature name correct for the software package.

Additionally, it would make more sense if iTunes LP creation support was added to GarageBand, not iDVD.

Boy Genius Report’s record on Apple software is dubious at best. They were the ones that claimed Blu-ray was coming in iTunes 9, which obviously didn’t happen.

The only thing we know for sure is that Apple has removed ’09 from both their iLife and iWork boxes. That’s an unprecedented move, and may signal that they consider iLife “mature” and don’t plan on revving it this year. After all, this wouldn’t be a surprise. They didn’t update iDVD at all with the ’09 release (making two straight releases for iLife in a row without a significant iDVD update as ’08 didn’t include much) and barely updated iWeb.
 
Nice. But I want BRD playback support and the ability to burn my HD home movie to BluRay. This alone will push me back to a windows machine. All the iWhatever downloadable and uploadable ability is nice, but not everyone has that kind of bandwidth. I have used iDVD quite a bit actually, but am totally unsatisfied with the quality after the conversion process.
 
I have used iDVD quite a bit actually, but am totally unsatisfied with the quality after the conversion process.

Are you dissatisfied iDVD down converts your HD video to SD? Or are you dissatisfied with iDVD’s compression? Because there’s a setting in the preferences to use “professional" compression on a dual-layer DVD which is about as high quality as you’re going to get.

I suspect, someone(s) will create tools that allow you to create tools (ala MacTheRipper/Handbrake) that allow you to create the format from your existing DVDs.

That would be a lot of work since DVD menus are basically regular MPEG-2 VOB video files (like the actual movies themselves) with navigational data.

Additionally, it gets even more complicated with Blu-ray menus as all of them are compiled Java applications.

Ironically, HD DVD would have been perfect for this type of application since the entire menu was basically HTML, javascript and a XML file.

I don’t think tools will be available anytime soon. At best, we can hope that a homebrew community decides to recreate the original DVD menus using Apple’s TuneKit.
 
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