You honesty think you can fit high quality 1080P on a DVD? The raw amount of data from 1080P is monstrous and even combined with the highly efficient x264 encoder you aren't going to get that onto a multi-layered dvd without compromise.
"it's the same way that dvd quality video was put onto cd's by most computer users before writable dvd's became common"
Oh please tell me you aren't talking about svcds. Not only were they encoded in mpeg2, but they couldn't hold a 2 hour film. Even taking into account mpeg4 which didn't arrive until quite late, you will not end up with 'dvd' quality.