Quality has everything to do with:
1. Top End Source material
2. Top End Encoder
3. Experience
Since 98% of people on these forums do not use or have any of these variables, there's no way to achieve the same quality has Hollywood. Most films are shot film and transferred or shot as 2k or 4k images.
High end encoders can cost as much as a small home. Backed by someone whos paid well knowing how its used and you have a combination which cant be matched by prosumer tools like Compressor.
Down converted in the most important step. since DVD is 720i it will need to be correctly down converted from 1080 first. Some method are better than other so its important to know the technical details of what is happening. Here's the workflow Ive always used:
http://www.precomposed.com/blog/2009/07/hd-to-sd-dvd-best-methods/
http://bellunevideo.com/tutorials/hd2sdTutorial/hd2sd.html
http://www.lafcpug.org/Tutorials/basic_hdvideo_to_dvd.html
Its alot to absorb at first :)