First the service is in "Beta" and is offering SD quality at this time. They intend to offer Blu-Ray in the future. So the promise of quality is only a future capability, and not something they offer right now.
Second the downloads are going to take a long time. Even if you have available a smokin fast connection, the speeds will likely be throttled by their servers. Then the issue of bandwidth caps will become a real issue.
Third, since this is a full download, I assume I'll be forced to sit through the endless trailers and legal notices just like on a BD disk. This drives me up the wall with the BD disks.
I have a solution that works for me today, at a fraction of the cost. The problem, is that it is technically illegal. I use MyMovies with AnyDVD HD. I have an optical drive attached to my Home Server, and ripping a movie involves sticking a disk in the drive, and walking away. This rip takes 10-15 minutes... much less time than the download will take Kscape, and at the end I won't have to sit through trailers, as I've configured AnyDVD to rip only the movie and the audio my system needs.
I don't feel bad about doing this. I'm buying the movies, and therefore supporting the people that make them. I doubt any company would ever want to take me to court, as what would they claim as how they were damaged? I bought the movie, and have a right to use it. I is only on my home server, and used by one system at a time, just like the disk.
I understand why the pros here cannot offer a system like this, but that fact doesn't make Kscape compelling.
I think this is an effort by a company in their Death Throes to do what they need to in order to stay alive. Unfortunately, I think it will be too little, too late.