Will older films be produced on blu-ray or HD?

All movies that were originally film have a higher resolution that 1080p, whether they are introduced in 1080 is up to the company that owns the rights to the movie. The actual quality of the copy is determined by the quality of the transfer as the original film quality is superior to 1080P. I would guess that if HD or Blue-ray become the standard, then yes all films will eventually be available in that format. Taking into account that the quality of the transfer just like in audio is in the hands of the engineer.
Some will be great and some will be inferior.

yes, but depending on the age and condition of the original materials...and the post production.....they may not look significently better. some films look as good as they are going to..period.

Agree we are going to see PLENTY of films taht are just going to be the digital transfer that was used on DVD.
Remastering from an original print is EXPENSIVE.
So you can be certain the old releases will not be upgraded in quality for a LONG long time.
The back catalog of film is HUGE!! and by the time the so called hi def formats get around to working on upgrading old films... a NEW even better format will come out.
(I DO have an agenda here. I will NOT buy any hi def disks and stick to plain old DVD for the forseeable future. HD-DVD and Bluray are just like S-VHS was to VHS and DVD-A and SACD was to CD. markets that will NOT make the breakthrough to replacing standard DVD. They battled to come out early hoping to beat each other with little consumer benefit in mind... just thier own corporate egos full steam ahead.
Sort of like Laserdisc... When the big companies dump HD-DVD and Bluray in a few years.. stop making players (like Sony with CD transports, and SACD discs) you will whimper quietly....
(I have been buing DVD movies on sales as fast as I can with 1,200 or so...I will NOT buy a HD or Blu disc period))

Just like they colorize many old B&W movies, they may someday try to computer re-engineer old movies to something sharper than it appeared originally. It may not be technologically available as we speak, but in a few years who knows. Might be the only choice if regular DVD is discontinued someday.

I am surprised they did not digitally remove the wires in that Matrix example..

Same for the cost. Digital effects use to be very expensive; now any Joe/Jane with a Apple PC can produce better effects than George Lucas could 5 years ago.

You would be suprised at the quality and condition of some of the older films from the 40s, when and if they are transfered to HD they will be superior to the current dvd format.