I didn't see the topic of "HD Lite" or rather compressed soft looking HD picture addressed in this write up of the investors call but I decided to do some A/B testing on my own this past weekend.
The channels selected are those that can be received on both Dish and Directv with MPG2, not MPG 4 because I don't have an MPG 4 capability with DirecTV yet.
It appears that DirecTV has much improved their picture quality as they now look nearly identical to Dish Picture quality on HDNET, HDNET MOvies and Discovery HD. ESPN looks a bit softer yet. On Dish Network the new VOOM channels and other known MP4 all look sharper than any of the DirecTV MP2 channels (Apples to Oranges)
So, in my opinion, this age old argument of soft HD PQ on DirecTV is over. From reports, I'd have to assume that the images on DirecTV MP4 are even better. This is all good news for everyone. The message of quality has not been forgotten in this race for quantity.
Also, please understand that I am only viewing on a 720P x 1280 native monitor with 120" full screen, so any resolution beyond that is lost anyway.
When D* finally delivers on it's promise of 100 channels and E* fails to compete, I will then look into flipping my primary service back to D* including the new HR20. Currently I plan to remain with E* who is delivering and has good equipment.