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""Second, one of the benefits of the new Blu-ray and HD DVD formats is that they will deliver movies in native 1920x1080 format directly to a 1080p projector, so that they can be viewed without scaling. The use of an anamorphic lens requires that 2.35 material encoded in native 1080p format be rescaled vertically, and then stretched optically. So you lose the advantage of seeing the film in its pure native format, perfectly reproduced from the HD DVD or Blu-ray disc. Advocates will say that the cost in reduced image acuity is insignificant, and it may well be. But it is something to be aware of."
...They already discussed the benefit of using the lens and getting the full resolutions of a 1280x720 (921,600 pixels). However, when discussing 1080p with BD and HD-DVD they don't say how you would still gain the advantage of using the full 1920x1080 (2,073,600 pixels!!!). They make it sound like it would be better not to stretch it and only use 1,555,200 pixels (did I do the math right...75% of 2,073,600?). Granted that's still more then the pixel count of 1280x720 but not as much as you could have along with full brightness"
Anytime you process an image you are reducing the overall quality of the image. With Blu-ray/HD DVD you have video that is optomized for display on a 1920x1080 projector directly from the source. In a CIH setup using an anamorphic lens you end up digitally, then optically skewing the original material. So, yes, you get the additional pixels, but to get them, you must damage the original material. Then the added brightness may be offset by having to introduce the new optics to your setup. The end result, could very realistically be, a fall in image quality, while maintaining the same overall brightness with a net cost to consumer of several thousand dollars. You lose a lot of cash for no improvement, and potentially a loss in overall quality.
My personal preference would be that manufacturers offer motorized zoom, focus, and lens shift adjustments... with presets! Sure, get that 2.35:1 CIH screen, but then press one button on the remote and the projector zooms in, auto masks internal pixels and fills the 2.35 screen perfectly. Press another button and it zooms out for perfect 1.78 viewing. One last press and you get your 1.33 screen fill.
Throw in a couple of 12v triggers on this projector and you're talkin' about full maskng control!
I don't expect it anytime soon, but could definitely see it come along in a few years if manufacturers are smart enough to pay attention (you listening JVC? Sony? Hello???)