Lets look at the bigger picture
For the mass majority of people who don't have a HD setup at home (TV, Sky-HD, Blu-Ray Player/HD-DVD player etc…), movie download rentals in SD is very appealing. I think what this release gives us is very interesting. We can all download video on our computers, but to watch them on our TV in the living room environment is much more interesting.
I don’t think the ability to download films will ever kill the DVD/Blu-Ray/HD-DVD market. If I love a film and want it for my library, then I’ll but it. But if I missed it at the cinema and just want to rent the film, then being able to download it, instead of getting in my car, drive to the local blockbusters/video rental store seems a good idea to me.
Internet speeds and usage limits is an issue but providers are going to have to adapt to the new idea that more and more people are going to be downloading more than just 1Gb per month.
As and when broadband speeds increase, compression gets better, and devices like the AppleTV support 1080p and uncompressed audio should I then go out and spend £10k+ on a decent 1080p TV or projector with an AV receiver that is capable of handling all this information in my perfectly setup living room.
Until then, I’m more than happy with SD on a decent CRT TV and renting films whether it is downloading using AppleTV or going to blockbusters.
It’s all about the choice these days. If you want it, great, if not, no one is forcing you to buy it! Some people will only be happy when they can play the original film rolls in their private cinema with 10.1 DTS audio. But we can’t all fit one of those in our 2 bed flat in Camden, now can we?