I stopped by the Echostar and hauppauge booths today and got a good download. It was a little hard to find someone who knew what they were talking about, but I managed to get some good info.
The Dish box was streaming encrypted video to Sage running on the blue ray player using DTCP-IP. The sage player was not recording it, just playing it. From the conversation with the echostar guy, it sounded like they were not going to let another device record content, but rather provide it to a device that could display it in whatever UI the device wanted. This is unlike the cable guys who will allow other devices to display content, but only if they control the UI completely.
This is not the dish box acting as a tuner to Sage.
The hauppauge box was quite interesting. USB connected, it has a analog component encoder that can encode 720p, 1080i, and yes, 1080p content in an H.264 format at data rates of 5 to 25 Mbps. This allows for pretty good quality, though not as good as an R5000. The HD-DVD disk they were encoding looked very good at 9 mbps.
The h.264 profile they are using is blue ray compatible, so a codec that can playback BR content should be able to play this back too. They also can take in SPDIF for multichannel audio recording, which is synced in software to the video. It's fresh out of the engineering lab, but they claim it will be in production and distribution in a couple months for $250.
A friend of mine said a bunch of companies are working on this same type of product, some farther along actually, and so we will likely see a number of such products soon. The BOM for such a card is likely sub $50, so the $250 price is high and is likely to come down soon after there is more competition.
The Dish guys thought the Sage guys were at the show, maybe in a suite, but I couldn't find it on any of the show documentation. They must be in stealth mode. I wonder what they are cooking up... Must be good if they don't want to share.
Hope this helps answer some questions.