What you are referring to only has the equivalent of 360 lines because of the black bands of wasted resource at the top and the bottom. That is not standard definition is it SUB-STANDARD definition.
With a 33% improvement in definition (from 360 back up to 480) you may well find that some of those "many people" will change their opinion.
Again, this "sub-standard" has been done by the broadcaster
and there is nothing that the service provider can do to get the resolution "back".
What may be possible, if allowed by the CRTC and the broadcaster (which it is not yet) is to use the HD channel signal by the BDU to provide better quality SD at the customer end. Most HD STBs have an SD output for those with SDTVs. However, this would require:
- that every customer has an HD STB (or one capable of receiving HD channels)
- that the CRTC and original broadcaster allow this
- that the SD channel is deleted from the lineup to recover bandwidth.
- the programming on the SD and the HD channel would need to be identical and that is not always the case.
At some future point this will be moot as there will be no SD broadcasts, which will be good.
For those channels that are SD only, there is nothing that the BDU can do by themselves to "recover" resolution lost at the broadcast stage.