Aaron, I agree with you mostly on this, except that instead of going for a one-size-fits-most model and going DVD only, they should be offering a choice between getting either a DVD, a regular Blu-Ray, a 4K Blu-Ray, or a download code. The production cost would increase slightly, but there would be no grumbling about format whatsoever. Well, except for those who must have each version and then "have to" subscribe multiple times, but I'd wager that's the 1%.
I don't hold out hope that they'd be able to make that work. They struggle with the gifts in most cases. Getting out one version in a timely fashion seems to be a challenge, look at this years address mess up. I'm not confident they'd manage something more complicated, although they did it with some success with the Slane T-shirts years back.
The fact that a beautiful 4K film is being shipped on DVD makes me (and others) think it's being released in other formats. That added to the rumour mill that said this was going to be released, with more news in March, makes me think it's a way to fill the gift quickly with something they have mastered, approved and ready, but may hope to maintain some income from whatever they might do with it in the future.