The way I understand it is that they will keep the existing MPEG-2 programming and simulcast the MPEG-4 programming on different birds to be viewable by folks with all MPEG-4 capable equipment. This will allow current customers without VIP receivers to continue viewing their normal programming. Completely changing over to MPEG-4 would be an ENORMOUS task. Changing EVERY dish and EVERY receiver.....whew. That's a lot of dollars to spend. Consider this - what would they do with all of the returned MPEG-2 receivers? They'd be junk. DISH would have BILLIONS of dollars of equipment returned just to sit and collect dust. On top of that, they would have to manufacteur all of the millions of replacement receivers. Too much to do before the middle of next year. The only thing that makes sense is to simulcast both MPEG-2 and MPEG-4 service on different sats. Folks wanting/needing total MPEG-4 programming will get a different dish to integrate with their existing ViP receivers. For everyone else it will be business as usual. Then like Scott said, over time MPEG-4 will be the cat's meow for everyone. But it will be at least 2-3 years before the total switch is complete.
Don't jump to conclusions yet...
I just hope E* doesn't start advertising their upcoming capacity like the other guys. Advertise when you have it live and kicking.