Bullshit. Every film on HDDVD was released in 1080p, just like on Blu-ray. Interlaced video is only used for high-framerate television recordings.
also, ironically, most top tier BD50 movies that came out in the first year or two would have fit on a 30GB HD DVD disc (some may have required lossy compression like DTS 1.5) like Pirates, Crank, Ratatouille, Baraka, Corpse Bride, No Country For Old Men. you could probably even with a bit of hand tweaking (or easily with h.264) get Harry Potter into 30gb (most are under with 2 and 3 at ~35gb).
It's a naive, domestic operating system without any breeding, but I think you'll be amused by its presumption.