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"They look great on an HDTV with an upscaling DVD player."
I believe that's an overstatement. It may look ok but not great as upscaling DVD doesn't come close to Blu-Ray DVD.
Here is a quote from an article relating to upscaling:


"Despite some of the marketing hype claiming that upscaling will make your DVDs appear in true high-def quality, the increase in picture quality will never come close to matching that of native HD material (HDTV broadcasts, HD DVD, and Blu-ray). Moreover, the video quality improvement is completely dependent on how good the upscaling and deinterlacing technology in your TV already is. Every HDTV is already capable of upscaling and deinterlacing; the only benefit an upscaling DVD player can bring to the table is to do it better. In some cases, the difference is easily discernible. In others, it's much more subtle. Ultimately, an upscaling DVD player might be able to make your DVDs look better, but the difference will be worth it only to "critical viewers" who pay close attention to image quality."
Playing DVD on my PS2 (TV doing the upscaling) looks about the same as with PS3 upscaling.