Why does an iPhone need to have a display that conforms to standards designed for TVs and large monitors? If you're that serious about your video viewing experience that the idea of watching a particular movie at a down-sized resolution feels like a compromised experience, then surely watching it on such a tiny screen will also be a compromised experience?
Because iPhones are media consumption devices alongside being communication devices. They shouldn't conform to a TV standard, however it would be nice if the resolution would be higher than 720p or 1080p rather than downsizing on the media.