You're looking at 4-5GB per movie without any of the crap. It's nicer to have them on tap rather than have to reach for DVDs, and of course you're not limited to 250 GB - you can always slap in more storage. It's the principle of the thing.
On a side note, how would DVD movies be if recoded via h264? Should be smaller with the modern codec, but how would quality be affected? And playback on other devices?
Is DNLA something that existing NAT storages can handle, or a protocol that'd need specific hardware?
H.264 should be playable on every OS, there seems to be plenty support. In principle you could half the bitrate and size without loosing anything "big" in quality.
DNLA looks to be a part of other of Sony stuff so there is hope i guess.
4-5 GB or 7 GB really doesn´t matter, the 4-5 GB should hopefully be a minor part of any DVD collection since it´s really starving on Bits then. And of course i am not limited to 250GB, and surely i will transfer my 700 DVD´s to 3.5TB storage so that i don´t have to pick them up ;-). Yes it´s nicer to have them on "tap" but i would rather have other stuff on Tap, each to his own