Interesting Information Of Encoding?

I started to get off topic in the 185TB Storage Tape Discusion so I will start a discusion on Encoding and compressing that supposedly a Pirate uses to stream BluRay movies that were originally 8GB in size down to 1.4GB in size while still maintaining 1080P qaulity and looks alright to the average user. Like John says, it is about Pixel Density, or is it about more? What do you think of this article and its lessons? Can anything be applied to our industry? By the way, I don't believe he uses the common software called HandBreak for his encoding and compression like author states.

Article

Lesson #1, THE CONTAINER DOES NOT INFLUENCE THE FILE SIZE.

Lesson #2, THE CODEC DOES NOT AUTOMATICALLY IMPLY QUALITY

Lesson #3 THE BITRATE DOES NOT AUTOMATICALLY IMPLY QUALITY

Lesson #4 FASTER ENCODING GENERALLY = LESS QUALITY, and avoid (cannot stress this enough) video converters (and some video editors).

Lesson #5 USE SINGLE CORE IF POSSIBLE*, USE SINGLE CORE IF BATCH PROCESSING

Lesson #6 BE AS LOSSLESS AS POSSIBLE WITH YOUR ORIGINAL CONTENT

Lesson #7 DO NOT DO FILE SIZE/ BITRATE BASED ENCODES

Lesson #9 DO NOT RE-ENCODE AT A HIGHER BITRATE FOR NO REASON

Lesson #10 Use filters and “effects”

Lesson #11 Single pass bitrate encoding is not necessarily worse than two-pass bitrate encoding

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