[Dreambox 800] Picture quality SD

This means if you are watching an HD channel not through an HDMI to HDMI connector then the TV company can turn off or down the HD quality if the box is HDMI/HDCP compliant. If you are watching that channel with a non HDMI licensed receiver then as I understand it you just won't get a picture as one or other device doesn't have the HDMI HDCP encryption chips built in.
HDCP is a function of the receiver and not part of the broadcast. The broadcaster can issue commands embedded in the stream to switch HDCP encryption on and off but it is up to the receiver to actually do anything. If the receiver doesn't have HDCP (like DM800) then its software is supposed to stop decoding. But I bet the DM800 ignores those commands. And if it doesn't.... I am sure it can be made to ;)

TVs with the "HD Ready" logo all have to be HDMI compliant I think.
Not true, many early ones did not even have HDMI connectors.

Signal receivers without an HDMI connector almost certainly won't have the HDCP system built in though some devices such as PC video cards CAN have HDCP but still will use a DVI connector for PC not TV use, and the same issue exists there too I think for monitors to need HDCP.
I am sure it was customer demand fuelled by the regulations imposed on the decoder software. If the media requests HDCP and the software cannot detect compatible hardware it is legally supposed to stop decoding. But since when did that ever stop anyone? There are cracks for all players to disable HDCP.

The Dreambox 800 IS HD and any signal it can get that doesn't rely on HDCP will I am sure be happily shown on a connected TV. What happens when HD recordings from Dream-boxes of movies shown, say on BBC HD start appearing and the BBC is put under pressure by the movie makers to use HDCP to DRM the broadcasts is a different issue.
I am pretty much sure nothing happens. It just carries on working
 
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It seems worse because you get used to the HD picture quality.

The SD quality is OK to Average i'd say.

And thats on a Pioneer HD Kuro TV ;)
 
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