In any case, the few anamorphic transfers I've made from the SW LDs always show the inherent flaws much clearer than a straight letterboxed transfer I (and I've recently seen that there are many more than I originally knew of, and they actually get worse as the quality of your player improves. 
)
) Aint THAT the truth!
A friend recently bought a brand new 32" Sony WEGA flat CRT and I set it up for her (she basically said "My husband knows about plumbing and stuff, Rich, you know about this TVs, can you set this up for me?"). It replaced an old Philips 28" widescreen that she'd had for 5 years. I set it all up with RGB and the picture from her DVD player was amazing. When she plugged in her Sky+ (TiVo) and started watching that. Suddenly you could see all the compression and jaggies from the recorder that you just couldn't see on the Philips. I had to turn the sharpness down on the set so that it blurred the jaggies and they "disappeared".
By making the picture worse (less accurate), it appears better (more pleasing on the eye). Kinda like a woman after 8 pints of Stella.
With an anamorphic encode though, I have the choice of how much I want to "unsharpen" the picture, just like I can decide how much I want to drink when I go out on the pull
