Yes, I've heard that around a few times now. But basically that would mean that the image would be too big if it was set to "Overscan". This is not the case.
The case is, that the image is too big when the setting is set to "Original" or "Direct Source" - on both TV and player.
In order to "scale down" the image to fit the TV, I will have to set it to "Auto" on the player OR "Scanning" on the TV.
Setting both to "Original" makes the image too big. So to me that doesn't qualify as "Overscan".
Ok, I have gotten an explanation for this on another forum.
As you say, in the good old days CRT TV's magnified the image a bit to hide technical areas in the edges and so.
LCD TV manufacturers still do this, though there's absolutely no need. It is very silly.
What's even more silly is that "Original" or "Normal" setting = Overscan.
So if you want "real normal", you actually have to zoom out.
This is why on my Sony Bravia TV I have to choose "+1" in order to get a correct picture, instead of "Normal".
Talk about an illogical mess.
Now I have to try to explain this to my users somehow....... otherwise they won't get a full picture when viewing 8-bit Memoirs....
It really is a mess because: If the Blu-ray player is set to Auto, then it will detect the screen resolution from the TV. But the TV will send back a smaller resolution that it's able to display because of the overscan setting, to which the Blu-ray player then will say: "Ok, then I'll just go ahead and scale the image before sending it to the TV".
Obviously we don't want that, but that's the default setting of most setups. You probably have it set up like that yourself at home.