Right.... at the top, it's just showing the DVD standard of 480x720 for 4:3 or 480x853 for 16:9. In reality, all DVD's are 480x720 but the width gets squashed to 640 for 4:3 or stretched to 853 for 16:9. And under Final Dimensions you can see it's actually a 2.35:1 aspect ratio, so black bars are added above and below to accomodate that.
I don't think DVD players vertically stretch the image, only horizontally. Computers will vertically stretch to fit though. And TV sets will have "zoom" settings that will stretch a cropped widescreen video to the full vertical height of the screen. The default would be to show cropped widescreen in a 4:3 frame (pillar-boxed) with black bars (letterbox) above and below.
I think the reason it says 718 instead of 720 is because there's a one-pixel wide black line at the right and left side of the image. Handbrake will automatically crop out any border around the image. I ripped over 1000 DVD's with Handbrake for my own library and those settings can get very confusing!
I also "cut my teeth" shooting widescreen SD video starting around 2002. The early "prosumer" DV cameras shot widescreen in the cropped format which really degraded the vertical resolution. A few years later, prosumer anamorphic widescreen DV camcorders became available. This was well before prosumer HD cameras came out. I had one of those early anamorphic DV cameras - the Sony PDX-10 - which was small but produced surprisingly high quality widescreen SD video. The other approach to shooting it was using an anamorphic lens with a 4:3 camera, which squashed the image optically. These were expensive and had a variety of issues.
I was a moderator at dvinfo.net back in those days and threads about 4:3 vs 16:9, cropped vs anamorphic, etc. would get very contentious (and eventually devolve into Sony vs Cannon, LOL). It was amazing how passionate people were about this back at the time, we handed out quite a few suspensions in those threads! 🤣