I'm taking Apple to task for this. The
iTunes UK Terms of Service (as of 29th June, 2010) stipulates that:
HIGH DEFINITION PRODUCTS
Products in high definition resolution (HD) are viewable only on computers, iPad, or TVs using your Apple TV; however, HD Products purchased also include a standard definition version delivered to your computer that may be transferred to your iPod or iPhone.
and
(xv) Film Rentals:
(aa) Films are viewable only on your Mac or Windows computer (using iTunes 7.6 or later), iPad, iPhone, iPod touch, iPod nano (3rd or 4th generation), iPod classic, or on TVs using Apple TV. Films in high definition resolution (HD) are viewable only on your Mac or Windows computer, iPad, or TVs using your Apple TV. Films are viewable on only one device at a time.
and
4. System Requirements. Use of the Service requires a device such as a computer with the iTunes application installed, Internet access (fees may apply), and certain software (fees may apply), and may require obtaining updates or upgrades from time to time. Because use of the Service involves hardware, software, and Internet access, your ability to use the Service may be affected by the performance of these factors. High speed Internet access is strongly recommended (and is required for Film Rentals). Content in high definition resolution (HD) is viewable only on computers or TVs using your Apple TV and must be downloaded directly to your computer or Apple TV. You acknowledge and agree that such system requirements, which may be changed from time to time, are your responsibility. The Service is not part of any other product or offering, and no purchase or rental (as applicable) or obtaining of any other product shall be construed to represent or guarantee you access to the Service.
I can't see anything in the terms of service that states that HD films can't be viewed on a computer. Seems to suggest otherwise, in fact. I've just submitted a complaint to trading standards about how this can be interpreted from a consumer point of view - because as far as I'm concerned - if HD is mentioned on a film purchase, it should be viewable on the computer, iPad and Apple TV in HD. Apple have said to me that HD is only optimised for the iPad and Apple TV devices. Which is bull poop. I can't find any technical reason for not delivering an HD copy to the computer to play. SD movies on my PC running iTunes upscale terribly, so 720p HD would be quite nice. In the mean time, I'm avoiding iTunes and sticking with Blu-Ray.
Not happy with Apple at all right now.