mrgreen4242, that was very helpful. Thank you!
No problem, glad I could help. I have a pretty huge digital video library at this point, with about 450 movies (maybe 75-100 are short films, the rest feature length) and just under 1000 TV show episodes, mostly DVD rips we've been amassing over the last couple years so I've put quite a bit of time into this.
I used to use a custom HandBrake setting, with all the advanced strings set and stuff, but the jerks over at the HandBrake site have done a great job with the newer presets, and I just use the universal setting now.
But you could keep 720p at 1280x720, which should look pretty nice when scaled up full screen by the iPad (i.e., cropped at the sides). Granted you loose the sides (I hate pan & scan, too) but all it takes is a double tap to zoom in and out, just like the iPhone/iPod touch.
But I agree that unless you're sourcing off Blu-Ray, there's no point in upscaling a standard NTSC DVD encode beyond 480p. And 480p looks pretty good on my 105" 720p projector, too.
You could, and for the 3:2 aspect ratio, 3.5" screen on the iPod touch/iPhone I often do zoom in and crop... but a centered 4:3 crop of a 2.35:1 source is just... wrong. :/ Letterboxing on a 10" isn't as big a deal as on a 3.5".
If you are targeting an iPad and an AppleTV (or similar set top box) only, and ripping from BD, a 720p24 rip is an OK choice (the ATV can have some trouble with 720p30 content, which you run into somewhat often and for that I might go "half-HD", or 540p30).
If you want to share the content around pretty much any modern Apple media player, and/or are ripping from DVD, 480p is fine. Personally, I have ZERO interest in going to BD/720p rips at this point because:
1) won't ever go back to disc media
2) device compatibility
3) storage space
4) rip/encode time
5) 480p is "good enough", especially upscaled (I know it's not HD, but honestly, I just don't care... a bad movie will still be bad at 4k, and a good movie would still be good on a 2.5" iPod classic screen)