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To me the first and top most BASIC THING is that a DVD of a FILM be made from a FILM and not from a video copy.
If a DVD is made from Film, there is no reason for it to be encoded in interlaced fashion as interlaced recording requires 25% extra info. That is another thing if the DVD authors are competent. Isn’t competency the SECOND MOST IMPORTANT BASIC THING??
Once you have these two basic things right, everything else automatically falls in its place. For Example MISSION KASHMIR, LAGAAN, ASOKA (PAL). Mainstream/ Hollywood DVD companies GAVE NO SPECIAL TREATMENT TO THESE DVDs and yet they are among the top ten Indian DVDs. They just had the two basics that I stated above, right.
Not quite! DEI for years and from the very start did film to DVD transfers - your first criteria filled to the full. Yet how many of these titles got the basics right? Only a hand full as you've mentioned yourself on a number of occasions. Most of the DEI/Eros wide screen movies were cropped - this is most basic thing they should get right. I would rather watch a copy of interlaced Satya in its full aspect ratio (if such a thing existed) over the cropped progressive DEI mastered DVD – same can be said for Dil Se. And when DEI did move to fuller aspect ratio they tended to squash the video 
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Basics should include getting the aspect ratio right, framing right, the colours right and presenting the audio as it should be. Progressive mastered DVDs when these basics are right enhances the picture greatly – when viewed with he right equipment! Ideally all these elements should be in – there’s nothing complicated about getting all these things in – then competency does come into it and non of the Indian DVD companies are professional or competent when it comes to DVDs.
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IT IS HERE RIGHT NOW.
Depends where you in the world – possible true for people living in USA/Canada – not necessarily true for else where.
Ali 
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) and poor sound – I’d rather Indian DVD makers got these basic things right first.
(What say you Ali ! )