Honestly, I don't buy that explanation at all. What's the difference between the aTV playing VIDEO_TS and a Mac playing VIDEO_TS? Hell, Front Row can play VIDEO_TS without using that script that was developed by of our forum members.
I agree that Apple won't have VIDEO_TS capabilities in the aTV anytime soon, but I don't buy that it's the movie studios behind forcing it. In any event, I won't be buying an aTV unless it has these features, or something else that replaces that functionality.
ft
Can you legally copy DVDs?
http://reviews.cnet.com/4520-3513_7-5128652-1.html