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The PSN video store does offer HD movie downloads (1280x720, same as the XBL store), even going so far as to provide multi-tiered pricing with a premium for HD rentals.

File size alone shows that the HD files are compressed appropriately for DL purposes over standard broadband networks. They are not Blu-Ray quality, nor are they being advertised as such.

The only video purchases currently offered are SD movies and TV shows. All 1280x720 content is rental only, presumably to keep the Blu-Ray format relevant despite the difference in quality.

It's another source of revenue for Sony, same as MS, and many consumers will appreciate and make use of the additional service the video store provides. It's a win-win situation.