Sigh, i guess i will have to break it down for you, that even a 2 year old will understand.
Why does movies on blu ray and hd-dvd look 10x better then movies on a dvd disc? Because both hd formats doesn’t require to be compressed to fit on a disc. Where dvd movies require it, which = loss of picture and sound quality. Which is why sony game developers in the pass has stated that they are able to stream uncompressed info from the bd disc due to the amount of storage BD can hold.
OK first off you are making some pretty common mistakes I think talking a little above what you actually know. We ran into this with daanscardesigner a while back on the steeringwheel lag thread.
First off... BD video requires no compression? BD video comes in one of two formats, MPEG4-AVC (and MPEG and VCEG joint venture codec) or VC-1 (a mainly microsoft format originally used for HD DVD). Actually I think Mpeg2 Part 2 content might be included also... memory doens't serve me well on that one.
The point is... they are all compressed formats.
When talking about BD the uncompressed you so often hear about is uncompressed audio.
Secondly, the reason a BD has a sharper picture than DVD is mainly due to storage size. You can store a higher bit rate, higher resolution video file if you have more room.
You may say "and that is the same size improvement that means video games will look better!" but it's not that simple.
Yes BD could store more high res textures than a DVD. And that MIGHT contribute to having higher quality output from a game, but it's only one of many contributing factors.
Most important is how many textures a system can work with at once.
Think of your disc as your storage vault. The bigger your vault, the larger and more detailed files you can hold in it.
But it's not always accessible to work with, you have to go get those files to work with them and when you are done working with a file it has to go back to the vault (in reality you do not put files back from RAM onto the disc, but it's the easiest way to make this analogy work since the point is you have limited space to have files useable at any given time).
Think of your RAM as your desk. This is where you can put the files you got from storage temporarily while you use them. These are the files you can access directly.
Now if your desk is only 512 square feet, you can only fit 512 square feet worth of files on it at any given time. It doesn't matter how many files you have in storage, your desk is only so big.
If you have bigger higher resolution files in storage, you will be able to fit less of them on your desk at a given time.
The way a game console works is, it reaches out to the disc (long term storage) retrieves the files it needs to work with (files) and puts them into RAM (on the desk).
This is why he is saying that RAM is the limiting factor... no matter how big the texture files are, the bottle neck is that you can only work with the ones in RAM at any given time. In fact textures too big will be bad for you as you won't have enough room on your desk to hold all the ones you need at the same time.
For example, each car on a DVD game only has 100MB of textures then I can have textures for 5 cars in RAM at once. But wait you say, on BR I can fit much larger and more textures!! So I use 500MB tetures for each of my cars! Certainly my cars will look better! Well yes, assuming yoru supporting hardware (cpu, gpu) can handle those textures, you would get a better picture...
For 1 car.
Because you ran out of deskspace (RAM) to load more textures.
So in a system with 512MB of RAM, if you have a DVD with 9GB of textures, or you have a BD with 50GB of textures, it doesn't matter you can only load 512MB of textures at any given time.
Back to BR looking better than DVD, again there are lots of reasons, but they are in large part not related to game graphics as the contributing factors are so greatly different. With video a processor is decoding the video and simply reading what color every pixel is on screen. With games the console has to actually create the whole image on screen from dynamic parts. To explain it to someone who doens't grasp the basics already (no offense, but the way you talk about it makes it clear you don't) would be very difficult... like trying to explain calculous to someone who just learned basic algebra.
I don't mean that in an insulting way (although it sounds like it is) but that's what it comes down to.