Found this linked to by Penny Arcade of all places. It's a CNET discussion of HD-DVD vs Blu-Ray, and the linked article discusses the infamous ability to downsample your disc if it's not connected to a HDCP-compliant TV set.
In some of the discussion as to why this isn't such a bad thing (according to the studios, of course), they have this bullet point: "Proponents of downconversion argue that people have a hard time telling the difference between downconverted and true HD resolutions in the first place."
If that is true, and I actually don't doubt that it is true, this does not bode well for HD content on disc. If people can't tell the difference between 540p and 720p or 1080i, then I'll bet they can't tell the difference between the DVDs they have right now. And if they can't tell the difference, why would they want to go out and replace their DVD library with HD-DVD or Blu-Ray discs?
Blu-ray and HD-DVD: crippled HD analog output option - Alpha Blog - alpha.cnet.com
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