I’ve done this to some degree in my HDTV project. My experience with this is that averaging will not improve the detail in any way, and will certainly not remove encoding errors/issues.
The benefit of averaging in an LD capture is that you’re combining 3-5 copies of the exact same master through the exact same capture protocol. The goal is to eliminate analog noise, not increase detail. That’s not really possible. If you’ve tried capturing LD sources, you’ll notice that if you use only a single copy of the film, any defects due to the physical structure of the disc will remain even after averaging. This include laser rot, or dropouts, etc. The only way to remove those types of defects is by capturing from three or more copies of the exact same LD, with the same mastering, and using the median, rather than the average. Using the Median allows the video processor (AVISynth) to retain the most common or middle value for each pixel, which will not include random dropouts and laser rot speckling, that multiple copies of the disc are unlikely to have in common.
As far as the HDTV and Blu Ray versions, the first step is to register the frames, which are not always lined up, even though they hail from the same master. They are different down to the subpixel level, and can require multiple rescaling procedures to register perfectly. This can have a minor negative effect on the detail, in and of itself. Once the frames are properly registered, any averaging will just have the effect of lowering the detail and lessening the impact of encoding errors, not eliminating them. In an average of three sources, the master with the least detail still has one third of the input into every pixel, this applies to frames with encoding errors as well.
In working on version 2 of my HDTV project, I’ve found the best results come by using the highest quality source as the backbone of the project, and replacing damaged frames with the next best source. Ideally, you would get the best results using a method like Mike Verta’s, where you stack the layers and erase damaged areas to reveal info from the frame(s) below. Again this works well where the damage is dirt spots, but takes a lot of skill to match the sources when there are large parts of the frame damaged by the encoding/capturing process. Replacing frame sequences has proven to be much less labor intensive than that ideal, though color correction is sometimes required.
I’ve also seen that the Blu Rays are not more detailed by default. For instance, the Blu Ray of Episode III has more DNR applied and has much less grain than the German HDTV source. Sometimes, especially for the opening crawls, I’ve found that I get good results when I combine the Luma channel from the Blu Ray with the chroma channel from the UK SkyTV source.
Additionally, the colors in different captures are not identical, especially between the blu ray and hdtv versions, though to some extent, different captures are different as well. Averaging and regrading would make this not so big an issue though.