Dexter S04E10 HDTV MPEG [REQ]

Today, on one thread, was over-heathed debate because first Dexter ep. 10 appeared as MPEG. "It's bad." one said…
"Its MPEG quality" was response.
It sounded like "It's JUST mpeg, and mpeg cannot be better."
Yes, it can. It must be better. – I was thinking. DVDs are MPEG. Transport streams of HDTV are MPEG.
"Bitrate is too small for better quality" has been another argument.
No, bitrate is fine.
"File-size is too small, like XviD… it cannot be better" was the answer.
No, file-size is not the problem.
Problem is when someone thinks it knows, and knows squat.
Here is DVD compliant MPEG with 2 ch. AC3 sound.