i must disagree there. That alone will not put an end to that argument.
The reason why stuff like Tata Sky looks good on CRTs is twofold, firstly the fact that the displays themselves are standard def, and secondly the fact that the displays are small (max 29" in normal Indian cases). The aspect ratio is, as far as I can see, a factor of lesser significance.
I have tried playing Tata Sky both stretched and in the original aspect ratio, and the compression artefacts are easily visible on my 42" plasma in both situations. The quality of the picture does appear marginally better in 4:3, but like I said it doesn't take care of the other issues that are there with Tata Sky on an HDTV. In light of that, I prefer to keep it stretched since I don't find the effect bothersome at all.
I must check out whether selecting 16:9 makes a difference on News X as someone suggested.