I believed that the visual-psycho part was bull to, but the human eye can't see every bit of detail, especialy in the darken area's so it's pretty safe to leave some of these parts out.
I tought the winamp guys based their streaming media coded on that principle. (not 100% sure about this!)
But that's not the sort of compression that DVD2one uses, it's somewhat different and in our eyes not perfect enough.
(what can i say, we are perfectionists, sorry )
But with the new compression engine Erwin is working on, things are getting closer to our own desired level of perfection!
But indeed what you say is true, most people won't really spot the difference with the bare eye. Sometimes i think people aren't really watching the movie but playing a game called "Spot the artifact", it's their good right.
I have to admit we also play that game from time to time, it's amazing the level of detail (or beter the lack of it) you can see on a plasma display device.