The lowest common denominator is dialup. Per that argument, Apple shouldn't even offer SD content for download.
And I appreciate that Apple is apparently all knowing to you, but I would paint Apple customers as customers who pay up for quality- perceived or real. The hardware in our Macs vs. the same hardware in PCs often seem to involve us paying up for the Apple difference. I find no fault in that- just paid up big time for an i7 Quad iMac with SSD myself.
However, here you are turning it around, assuming that these same people who pay up for Apple quality electronics wouldn't pay up for better quality HDTVs, etc. Very soon, I'm replacing my old 1080HDTV with a new one, that costs a lot more than average. I am an Apple customer. I like great quality- especially in technology.
Actually if you want to get snarky about it, the lowest common denominator is a scratch pad and a pen or a cave wall and some dye. But since we're being realistic here, and the people who WOULD buy Apple ALSO most likely have broadband (yet don't know a megabit from a hole in the ground), you have to assume that:
A) IF someone wants movies on demand they will have broadband
and
B) IF they have broadband, they will have *****ty broadband
and
C) IF they're buying Apple products, they want them to "just work" without any hassles.
Not all Apple users have the biggest baddest Macs, nor do they even necessarily have Macs at all. The $99 price point of the Apple TV should already tell you that it's not a Cadillac product, but more of an iPod Nano. i.e., "iTunes for Everbody."
Since this is a "for Everybody" product, you have to make "for Everybody" compromises, which means good-quality 720p at a modest bitrate versus good-quality 1080p at high bitrates or crap-quality 1080p at modest bitrates.
I seriously don't see how this is such a difficult concept to grasp. Some of you people think that because
you have XYZ that
everybody has XYZ.
I work as a system administrator at a local ISP here in Germany. Typical broadband speed is a little higher here than it is in the US, according to
this chart.
Our base product? DSL 6000.
Our highest end product? VDSL 50000.
Our most popular product? DSL 6000.
Number of VDSL 50000 subscribers? can be counted on one hand.
I'm sure it's no different in the US.
And we service middle-class suburban communities. These people can afford more, yet they choose not to because 6 megabits is "good enough."
720p at 5 megabits is superior in quality to 1080p at 5 megabits. End of story.