Um, granted, DIVX was a failure, and this sounds like more of the same. But what's wrong with it? This isn't going to replace permanent DVDs that you can buy. It's just another rental option, one that saves you the second trip back to Blockbuster (or shipping costs back to Netflix, which would allow Netflix or its competitors to lower their prices).
And suppose they extended it to CDs? That would give you a low-cost way to try out a CD without paying full freight. Perhaps they'd even credit you the cost of the rental if you bought the permanent disk. You wouldn't want to do that with thousands of disks, but for items that particularly intrigued you, it might make sense.
As for quality, your player either reads the bits or it doesn't. A well-designed transport should have no problems. But then, not everybody has a well-designed transport.
And suppose they extended it to CDs? That would give you a low-cost way to try out a CD without paying full freight. Perhaps they'd even credit you the cost of the rental if you bought the permanent disk. You wouldn't want to do that with thousands of disks, but for items that particularly intrigued you, it might make sense.
As for quality, your player either reads the bits or it doesn't. A well-designed transport should have no problems. But then, not everybody has a well-designed transport.