My Anthem D2 is HDMI 1.1, and I'm using 1080p48 and 1080p60 with it without any problems. 1080p24 in (yep, it does accept 1080p24 in) and 1080p24/60 out without a glitch...
Also. My new Toshiba HD-XA2 can decode DTS-HD internally and send it to any receiver or pre/pro with HDMI 1.1 connectors.
All the Blu-ray titles should soon be encoded with "Advanced Content", and then the decoding MUST be done IN the player. The Blu-ray titles are now encoded in "Basic content" only because Sony was not ready to go interactive...
But be sure that all those titles will have a second re-issue with the "improved" advanced content...
But since all the HD-DVD titles are now encoded in Advanced content (with mandatory decoding IN the players... you can't send anything not decoded to a receiver if it's in Advanced Content...), then Blu-ray will have to follow... Or else they will do less then HD-DVD (because of the lack of Advanced Content).
Also. Deep Color is not supported by Blu-ray or HD-DVD (they are limited to 8 bits).
So HDMI 1.3 is useless.