Why would you want to watch anything in 4:3 center cut. Sports is all broadcast widescreen so a center cut will block most of the graphics. Most news stations are also going 16:9 with graphics packages.
Both. Some channels are broadcast properly in HD or on other providers, but the SD is squished on Directv. I suspect that will get better (not completely) after the mpeg 4 change. In other cases, the channel sends it out incorrectly on the SD version and there's not much Directv could do.