I think you've mistaken the Hollywood movie industry
companies et. al. for altruistic entities that truly
care about bringing top-flight entertainment to the
masses for the lowest possible cost.

Nothing could be further from the truth.

How would your suggestion sell more, higher-priced
DVDs in the new formats -- especially for titles that
people already own? How would it sell more players
from the consumer electronics manufacturers who have
thrown in with the movie industry and licensed the
new formats?

In short, how would it make more money for all concerned
by extracting it from the end-user?

It wouldn't, which is why your idea is a total non-starter.

A blog of crazy ideas, indeed. Coincidentally, I'm
reminded of a quote from a movie:

"You keep thinking, Butch. That's what you're good at."
-- The Sundance Kid, (Robert Redford), "Butch Cassidy and
the Sundance Kid"