I'll be honest. Most of the screenshots I've seen from the Fellowship blu-ray look pretty good to my eyes. But there are a few instances where DNR has been needlessly applied. The most egregious example I've seen is this:
http://forums.highdefdigest.com/1883031-post2.html
The hdtv broadcast clearly looks better in that comparison, and that's just unforgivable. If the uproar over this release doesn't get the studios to lay off the DNR once and for all, nothing will.