My thoughts have always been that SW1&2 should have been dropped in to those slots and the other decomissioned and brought back. I mean it is not like they "can't" simulcast MPEG2 & 4 without consuming the bandwidth. However, as much as I know, the folks at D* (E* for that matter) know far more than I.
I am glad they are trying to reduce the profile of the dish. I have two friends with big screens who will not switch from cable until an XM or Sirius type and antenna is used ... I let them know they would be dead before that happened. (LOL, and they would have to watch crappy cable until then!!!)