Wow! Thank you for this great explanation. In my plans, my next post could have been something like “Is there a despecialized version of the films without embedded subtitles, floating around? I’m very happy with subs in Arial 36 white, placed on the black bar under the picture!”.
…but now I lack the courage to ask… 😉

More seriously, I’m happy with “basic” SRT subtitles only because it’s OK for me to place them on the black bars of my 16:9 TV, out of the picture. I agree with you that overlapping the subtitles is a no-no, if subtitles have to stay in the picture area. I also agree that seamless branching should be the best option, to mantain the authenticity of theatrical editions without cluttering the scene with multiple subtitles, and considering that the original Greedo dialogues are absolutely part of the picture (and that the “sliding text” in opening sequence should be read directly… needing subtitles there is a shame!).

Thanks again!