Gottcha. I figured that was the case

. I agree with your other points though. Video and audio quality is the #1 factor here. All the other things that come with the next generation formats are icing on the cake. People saying that space isn't an issue on a disc aren't aware that these movies are being compressed but don't need to be as compressed with larger capacity discs which means better quality (hence the issue with the audio for Transformers).
At work, when we digitize a film in full HD quality, the file size can be anywhere between 700gb to 1tb. Clearly these movies need to be compressed to fit on a disc. But with a BD disc you don't need as much compression. And like you said, films released on both formats will look identical because they are encoded the same way. There are so many people who claim that both versions are the same. While that's true, they aren't realizing that they are coming from the same master, encoded to fit on an HD disc, and then thrown onto a BD disc rather than a seprate encode. Of course, noticing the difference is something very few people can do, but this is mainly directed at Go to point out that space on a disc does matter.