We are currently still finishing in a 4×3 letterbox format–that is why I use the avid reformat. Ideally we would like to shoot true 16×9 for when we eventually start finishing to true 16×9.
I also notice the same problems without Avid’s involvement–when I watch the footage on a Sony Monitor in 16×9 mode, off a deck, it still has the same issues: ripples, shadows on edges, and an overall soft image.