Seems like you and I are on the same wavelength, GIK, as we've been reading the same stuff.
Bay is bold and he's brash but he's also a perfectionist who wants his work to be displayed the way he prefers. From both a PQ and and audio perspective, I agree with Bay. I feel that "Transformers" would have been better as a Blu-Ray release.
And I'm a guy who's watched that film no less than five times on HD DVD. I had to do a whole lot of tweaking to my settings just to get Transformers to get close to the best Blu-Ray films I own. The audio, while decent, is a bit low on bass. The HD DVD offers no lossless audio. Disc storage space limitations were cited as the cause. Imagine that. My audio receiver won't process TrueHD, but it'll take on uncompressed PCM like a champ. Yet Transformers only gives me Dolby Digital-Plus. And at weak bass levels. Sigh.