You ought to watch the TV before wetting the bed over it. Go to a Best Buy and have a look.
Because as much as you clearly know about film tech more than I do, you seem to be lacking a slight amount of common sense: What's happening there is processing of a digital signal. Specifically, the TV is creating frames for you to create the illusion of smoother video. And what this effect does, is it appears to flatten the shot.
What your slashdot-worthy post overlooks is that you're speaking from your limited knowledge of film. However, in this TV, there's a feature that lets you apply this setting to just half the screen, so you can see them both, side by side, and tweak as you wish.
Just like in life, there's no amount of theoretical education than can make-up for actually being there, for actually having hands-on.
So really, save the hyperbole.