Sounds like "SVCD-like" of the HD formats. If software companies like Nero can support this through their authoring programs, this will definitely be a hit for home users, at least until prices of HD-DVD burners/blanks go down.
Didn't blu-ray has a similar option too? I mean, HD-DVD/blu-ray/DVD, etc are just a medium. What matters is the file format/codec, etc. They can use CD if thay want to (Watch HD quality movie in just 20 CDs!
). Reminds me the days of installing programs/games from dozens of floppy disks.