This is incorrect. 1080i MPEG2 broadcasts are nowhere near the quality which Blu-ray (and HD DVD) can offer. The top bit rates for Dish tend to be around 12mbs while Blu-ray offers up to about 50mbs for data.
That's a 4 fold increase, and while there is no way that Dish can actually compete with that, they can definitely get off the MPEG2 train and start using the newer codecs of VC-1 and AVC to deliver broadcasts, and they can ditch 1080i/60 broadcasts in favor of 1080p/24. Keep in mind - 1080i/60 requires 30 full frames being delivered, while 1080p/24 only requires 24 full frames, so you can actually increase the quality, while maintaining the exact same bandwidth!
Also, if you switch to more modern codecs, you can increase the quality still more without increasing the bandwidth overhead.
Yet, they have been delivering HD movies for years which have been nearly at DVD levels in quality, the jump is continuing with companies starting to set their marks on Blu-ray - which is nothing more than good news for Blu-ray establishing itself as the leader for next generation HD video.