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Yes, the reason it needs to be blu-ray content rather than AVCHD content, is because only blu-ray runs Java. AVCHD don't. And it is Java that's being used for these homebrew titles, so it needs to be blu-ray.
I know BD25 discs aren't expensive. That's not the problem. The problem is that most people don't own a blu-ray burner, and they are hesitant to buy one just to check out some Blu-ray Disc Java homebrew game.
That's why it would be great if there was some universal way of making blu-ray players accept DVD as a media for blu-ray content.
The Xbox One is awesome in this regard. It'll play blu-ray content even on a CD.
If PlayStation 3 and PlayStation 4 would only do this too, but no.
(Well, early firmware version of the PS3 actually played AVCHD+Java from USB, but they killed that option in a firmware update).
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