"The only disadvantage is that AVI files do not contain pixel aspect ratio
information, so many players, including Windows Media Player, render all
AVI files with square pixels."
Please read this statement with open mind. What it is saying is that
* AVI file does not contain info regarding pixel aspect ratio
* This absence of of info makes it difficult to display the contents
correctly
i.e. When rendered with the assumption that pixels are square (by some
players), it may get displayed incorrectly.
This clearly implies that the pixels in DV AVI were *not* encoded as square
pixels to start with. Otherwise what is the problem?
DV AVI files for NTSC would always contain 720x480 pixel frames. Similarly
for PAL the frame would always be 720x576. However these strange frame
ratios can cater for the source content that is 4:3 as well 16:9
Why is it so difficult for you to understand that a 4:3 or 16:9 frame cannot
fit into a 720x480 frame area without stretching of some kind. This
necessary stretching would mean that pixels wont map 1-to-1. This non 1-1
mapping means that each pixel in DV AVI needs to encode color information
from multiple source pixels. There exist many algorithms for resolving this
encoding: point sampling, bilinear sampling, weighted average sampling...
etc. The algorithm used would determine how good the content looks but it
would always be slightly less in quality and sharpness than for 1-to-1 pixel
mapping.
Note that the article you mention was written in 2003 and since then we have
two major vrsion upgrades of Windows Media Player and I beleive that WMP10
is capable to show the DV AVI with correct pixel adjustment adjustment (even
when pixel aspect info is not provided in the file. This is simple maths...
not magic).