FWIW, scenario is trying to take movies I own the physical discs for and make them available through our AppleTV, so my kids can play them without having to deal with the actual discs. We have a blu-ray player that works fine, but the kids aren't really patient/careful enough (at least not yet :) to be trusted finding the discs and loading/unloading them. :)
While I could certainly jailbreak my AppleTV and use VLC or XBMC or whatever, my tiny bit of (potentially incorrect) knowledge on video encoding is that blu-ray discs typically uses mpeg-4, although the wikipedia page says that it is just one of 3 formats supported (specifically, it lists MPEG-2 Part 2, H.264/MPEG-4 AVC, and SMPTE VC-1).
I'm not sure how to tell whether a given blu-ray disc has an mpeg-4 version of the movie in the first place, and even if I know that, how I would go about 'repackaging' (hopefully avoiding any actual transcoding since the version on the disc will be far better than what I can do with Handbrake, at the same storage size, AFAIK).
Certainly the standard seems to be 'ripping' blu-ray to mkv (at least as a container, not sure about the video encoding used within), and if the target scenario was just playing it on a laptop (or similar), I'd be all set.
