Make your format that isn't DVD. If it's better than DVD, and offers more features, then it will catch on, and it'll beat DVD -- remember VHS versus Betamax? VHS was more popular. It won.

Yes, it won. But it won because it was more popular, not because it was better or offered more features. Technically speaking, Betamax was by far the better system. I think that's what would happen, when someone tried to introduce a new, Region-Code-Free digital video format. The big companies simply have the better marketing. DVD would win due to it's popularity... :-(