yes you are wrong on that. ATSC digital broadcasting does broadcast HD video ota. That just shows how misinformed you are. ATSC max bitrate is 19.8 mbps. the specs is like this, maximum resolution is 1920 x 1080i @ 60 fps or 1280 x 720p @ 60 fps at 19.8 mbps max in MPEG-2 compression. ATSC supports dolby digital 5.1 channels too.
MPEG-2 is a fixed resolution, so each channel has to be specify to a native resolution, so Fox channel is 720p, ABC is 720p, UPN is 720p, while CBS, NBC, KCAL are 1080i....etc...
So if you have a resolution that is not native to the channel\'s resolution, then it will either convert by upscale or downscale to that resolution. say for instance 480i sources will upscale to 720p for Fox channel or 1080i sources will scale to 720p...
indoor rabbit ears antenna or any antenna can receive digital signal, and all it does it just receive the signal, and in this case the 19.8 mbps max digital signal...then the digital tuner either inside the tv or the converter box receive the signal and decode the MPEG-2 and the tv or the converter box will process the digital signal data.
Its just that cable and satellite has better antenna which looks like a dish antenna where the size is bigger, and place on rooftop, and single path direction, so which means you get a lot better reception than a regular antenna. In this case, a you get much higher percentage of digital signal for nearly all of your channels broadcast. The thing about cable and satellite is that they are not free, but have a lot of channel selections. Another different is they use the newer codec of MPEG-4 for digital broadcast and the max bitrate for most 720p and 1080i is like 13 mbps, while many runs at 9 mbps to have more space for adding more channels.
HD 9 mbps MPEG-4 might looks as good as HD 19 mbps MPEG-2, and in some cases lesser noticeable compression artifacts. Even though the bitrate is lower than MPEG-2, but there are drawbacks as the picture might look slightly softer, and there are more noticeable color streaks while MPEG-2 looks finer and lesser noticeable color streaks, but has noticeable compression artifacts on scenes with lots of action going on.