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I don't think that is completely true. I have a friend who tried and his only came in black and white. I browsed through the article... but if you read the comments, you will see that the article is misleading. It looks like you have to have a CRT TV with component and the tv must have the option to switch to a widescreen mode. Also, some people appear to have gotten it to work without widescreen mode, but the picture is squished. From what I can tell, it is really hit or miss depending on the TV you have.
You are absolutly right... some tv will offer the widescreen mode and some not... mine is playing standard 4:3 only and the image from the apple tv is squished...
 
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