You just described youtube in general. As the old saying goes, "content is king". Look at VHS (if you're old enough to remember). As bad of a quality as it was, everyone used it. Pros would complain about how bad it looked, but the mass populace was just fine with it. Youtube is the same way. In the beginning, the quality was soooo bad, but users didn't care because it gave them endless content.
5 movies encoded to fit on a DVD-9 will still look much better than the typical VHS. They will also sound much better. Comparing DVD to VHS will always have DVD winning, unless the content was encoded from VHS.
You just described youtube in general. As the old saying goes, "content is king". Look at VHS (if you're old enough to remember). As bad of a quality as it was, everyone used it. Pros would complain about how bad it looked, but the mass populace was just fine with it. Youtube is the same way. In the beginning, the quality was soooo bad, but users didn't care because it gave them endless content.