Well, the Blade Runner DVD available at that time was sub-laserdisc quality, so anything would have been better. Not long after that HD2DVD release, the studio released an updated DC disc that looked better than the HD2DVD, and then we got the Final Cut/DC/International/Theatrical/Workprint boxset that all look better than the HD2DVD. And, of course, the Blu-Ray.
The current THX 1138 DVD looks pretty damned good, and unless this HD source used a different master (which I guarantee it didn't), it'll only look worse due to heavy compression used by most cable/satellite providers.
An AVCHD release would be great, until the Blu-Ray comes out. But what would really be fantastic is a proper release of the theatrical cut (my LD2DVD, frankly, looks like shit).