I'm definitely not close to being an expert, but I presumed the DVD subtitles were just defined by the DVD player as my DVDs vary based on where I play them, on the computer they look woeful.
Subtitle streams are encoded as a series of stills, so they should look the same whatever you play them on. The most interesting use of subtitles is on the Ghostbusters commentary - enabling them puts an animated shadow of the commentators on top of the movie, a bit like MST3K.
DE