Sort of...from what I understand (and happy to be corrected ) the MPEG/DVD Headers contain a whole lot of information about the video stream including stuff like:
- Aspect Ratios: 1:1, 4:3, 16:9, and 2.21:1 (not used in DVDs)
- Frame Rates: 24000/1001 (23.976), 24, 25, 30000/1001 (29.97), 30, 50, 60000/1001 (59.94), 60
- Horizontal and Vertical Size.
In the brave new HD world there "should" be no need to anamorphic style treatment as 1920x1080 and 1280x720 are native 16:9 with square pixels but we do see standards like HDV using specs like 1440/1080 which is a native 4:3 ratio using the same principles to show you a 16:9 widescreen output without recording all the "full" horizontal resolution (save space!)
You're mostly right (and what I said was essentially the same thing but I simplified it by ignoring PAL and odd aspect ratios and whatnot). There are actually a LOT more aspect ratios out there than just 1.33:1, 1.78:1, and 2.39:1.
One thing I think is different (and I too could be wrong) is that the 16:9 flag encoded on the DVD means the DVD is anamorphic. DVD content
CANNOT be encoded on disc as 16:9 native. That's out of spec. DVDs are standard def, 4:3 only. All other aspect ratios are tricks (anamorphic or letterboxed). That's one of the benefits of new HD optical media formats -- they can actually have non 4:3 native aspect ratios. Also, ALL NTSC Standard Def video uses non-square pixel aspect ratios, not just Anamorphic video. Most HD video now uses square pixels (Pixel Aspect Ratio of 1:1), "Standard" NTSC D1 and DV video have a Pixel Aspect Ratio of 1:0.9117, and Anamorphic NTSC D1/DV content uses a Pixel Aspect Ratio of 1:1.21557.
The DVD-Video standard specifies that the resolution on disc must be one of the following for NTSC DVDs:
720 × 480 pixels MPEG-2 (Called full D1)
704 × 480 pixels MPEG-2
352 × 480 pixels MPEG-2 (Called Half-D1, same as the China Video Disc standard)
352 × 240 pixels MPEG-2
352 × 240 pixels MPEG-1 (Same as the VCD Standard)
16:9 content is only supported via 720x480 with an anamorphic Pixel Aspect Ratio, or via letterboxing (the cheap way). 720x480 with a standard NTSC PAR is 4:3, not 16:9. However, all NTSC DVD video is encoded with a PAR of 1:1 (square). That's just how it is on disc. The DVD player reads the aspect ratio flag and then sets the PAR to either 1:0.9117 (non-square 4:3) or to 1:1.21557 (anamorphic 16:9) dynamically during playback. It's a player feature, not a DVD-Video feature. On disc, the pixels are square and the video is distorted no matter what. Remember, at the time when the DVD-Video spec was developed, there was no such thing as a square pixel widescreen TV, they were all 4:3 with a PAR of 1:0.9117. So, the developers of the spec had to figure out a way to display widescreen content in an optimal way on the 4:3 TV. They decided to use the old Anamorphic technology (you're right, it came from the old projectors with the different lenses) but adapt it to work digitally. The DVD player changes it's "lens" based on the the Aspect Ratio set on disc.
However, encoding to 16:9 anamorphic requires the studios to completely re-encode much of their old content. LaserDiscs and VHS didn't support anamorphic video, so they had a large library of content already encoded digitally at a 4:3 aspect ratio with Letterboxing added to show the full frame of the video. So, the DVD-Video spec also "includes" (means ignores really) Letterboxing. On a Letterboxed DVD the Aspect Ratio stored on disc is 4:3. To the player, the Letterboxed content looks no different than regular "real" 4:3 content, so the DVD player sets the PAR to 1:0.9117 (4:3). This was not a problem until we got Widescreen TVs, because the black bars were always desired on a 4:3 format TV (it was just a choice of whether the DVD player was generating them or whether they were actually part of the video stream). Widescreen TVs screwed this all up...
Now, two different things happen when this content is sent to a Widescreen TV.... The TV reads the incoming Pixel Aspect Ratio. If the PAR is 1:0.9117 it centers the 4:3 image (and the black bars appear on the sides). If the PAR is 1:1.21557 (16:9) then it fills the full screen with the content. The problems come when you try to encode either content with a higher Display Aspect Ratio than 16:9 (such as 2.39:1 content) -- then you get black "letterboxing" bars anyway (there's no choice unless you crop off some of the image), OR when you try to display Letterboxed (4:3 with the bars built in) content on a Widescreen TV. The TV just reads the PAR setting and centers the image with the side bars.
Maybe in the future we will have TVs that somehow scan the video content inside the frame and detect the letterboxing and then scale the content up, but we ain't there yet...
The reason those music videos (and other low-volume older content videos) are encoded so badly is that it is vastly cheaper to do it that way. The original scans from film were done at 4:3, for VHS. When they had to scan 16:9 content, they simply chose to letterbox it and add the actual black bars into the video scan. Then, years later when they needed to release the same content on DVD they had three options: 1) rescan all of the 16:9 content from the original film stocks (extremely expensive and difficult -- sometimes the film stocks don't even exist anymore), 2) "digitally remaster" the content (essentially crop and upsample the 16:9 content) which is the most common choice, or 3) just dump the original 4:3 VHS scans to the DVD (which is, of course, easiest and cheapest). They have bean counters who decide how many copies of things are going to sell, and set DVD re-release budgets based on projected sales figures. That's why the old Queensryche video compilation you bought on DVD looks essentially the same as the VHS copy with less noise.
Oh, and about everything being okay in a HD world? Yeah... Not so much. The new
digital cinema projectors and cameras now have their own new higher resolution (2k and 4k) and their own new aspect ratios, so it's going to be all messed up again anyhow. They're moving slowly but surely towards a world where all major production movies are going to be shot and formatted for IMAX-style screens and resolutions, and then they'll downsample and downconvert them from there...