Actually, Matt, you claimed uncompressed movies take 25GB for two hours. Right up here: http://news.ycombinator.com/item?id=99416
What I said is, Blu-ray movies take up on average 25GB with MPEG2 compression. In other words, your original estimate of the size of things was wrong, as was your implication that blu-ray was uncompressed.
Then you said that "blue-ray is not uncompressed video (thus, 25GB holds a 2 hour compressed movie)" By your own math they would only take up 12.5ish gb if compressed.
I actually am curious what digital cable uses. It's definitely 720p in my area, and probably compressed, but not highly.