Chroma Upsampling Error (Chroma Bug) on new iMac

I just scored my 24" 2.4GHz iMac last Friday, and I've been geekin' on it non-stop ever since. I'm completely in love with it. I do have one complaint tho, and it goes to the DVD drive and it's MPEG decoder: my 24" iMac displays a glaringly obvious chroma bug problem on animated DVD content ("The Inredibles", and "The Lion King" are prime examples). I'm guessing this is only "glaringly obvious" because the screen is sharper and clearer than any I've used before :-/
If you're not familiar with this problem, the short version is that on high definition progressive displays, the color information in incorrectly decoded MPEG-2 content (the format for DVD, among other uses) appears blocky and jagged -particularly in bright red objects. You may have a screen full of crystal clear detail, but everything red looks like it has been worked over with a hot bag of nickles. The problem is endemic to the entire chroma (color) portion of the signal, but most obvious in bright red areas.
The chroma upsampling conversion problem has been understood and solutions for it have been identified for years. Why is Apple still using MPEG decoder manufacturers who can't keep up with their delisciously-sharp HD displays? Nobody (that I know of) is using the dual-layer superdrive in any kind of interlaced NTSC environment. In other words, there's no excuse for this.
I'm guessing that within a year or two, they'll be stufing BlueRay or HD DVD drives in these boxes by default, and I'll be willing to bet they won't bother to address it then either, because the content will be of higher resolution, and therefore less noticable. It just ticks me off that they would leave such a huge compromise in the DVD playback capability of these new machines.
Anyone else notice it?

I noticed the effect. Cars is a grievous example, but it's apparent on non-animated DVDs as well. It does seem to be noticeable only on bright reds. (Just about unwatchable, however, was an old movie "Track of the Cat" - if you've seen it, you'll guess why.)
Could you explain a bit more about the cause of this, as you understand it? Why would it be specific to the new iMac? What can be done to alleviate/correct?

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