And it is an inferior method as well. Although it is wayyyyy more convenient (video and audio are kept in sync, much easier connections), it adds digital noise to the picture, and noticeably reduces the color pallete.
"Laserman and Zion said that part of the XO Project will be from the Definitives and not the Faces LDs"
The first version will be the Def. Col., but it won't stop there. The Faces set is my personal preference. Regardless, a variety of NTSC and PAL sources, as well as formats, are being seriously evaluated for each version. There have been a number of surprising findings when comparing versions and players.