Basically, Toshiba, Microsoft are making DVD 2.0, which is just HD DVD but on a DVD media (includes HDi, networked play, but uses upscaling instead of real HD ...).
More interesting is this part:
Microsoft was behind a proposal to DVD-CCA—originally floated two years ago but revived in modified form late last year—to introduce “managed-copy†to standard DVDs, under which consumers would be able to copy their DVDs to a hard drive under carefully DRM’ed conditions, for streaming over a home network.