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There was plenty of talk of HD and ED TV going back into the 80's so it is plausible that they didn't want the resolution to look bad in 20 years. However there are two possibilities that seem more likely to me. One is over sampling to avoid pixelation on any output. The other is dvds played via PC even the lower end ones of the period DVD was introduced could do that resolution or better, and PCs with CD ROM helped increase market share of CD before then. I'd imagine that the engineers and product planners behind DVD took that into account when developing it.
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