It would really be nice if the iPhone can read the Apple TV Video Specs as well. Being able to encode a DVD to full Specs (720x480 Anamorphic or 843x480) would be great since I can get full quality out of my DVD library and not have to encode for both devices.
I can understand it not being able to play back the 1280x720 HD, but even Full SD as I stated above would be perfect.
I really want the iPhone to have a Chapter Marker Selection Function like Quicktime and iTunes. It is very annoying that the iPod, and especially the Apple TV do not allow you to Select Chapter Markers from a menu. I hate having to skip each chapter marker to the next, especially since it takes so much time for them to load. A Pulldown Menu on the iPhone (think iTunes and Quicktime as I said) would be optimal.
Also, the display is said to be "Widescreen" but people here are saying it is 480x320 which is 3:2 (1.5:1). Native Widescreen is 16:9 (1.78:1). Does anyone have the actual specs? Even if it is 3:2, that is better than the 4:3 iPod display, but all the regular widescreen movies will still have black bars (Cinescope, 2.39:1, of course will have the bars unless you double tap).