Well, I skipped buying this set because the screenshots that were posted did not look good at all. With that said, I saw the Blu-Ray Season 2 set at the local thrift store for $2 and bought it for $1 after spinning the save-$ wheel, which landed at 50 percent off. So the total paid was $1.08.
I've watched two episodes so far, and yeah, relative to S1 and now S3 which I bought at Target, it looks bad. The live action shots in S2 look like the gag reel on the Best of Both Worlds Blu-Ray set- that is, they look unprocessed. The picture overall looks flat in season 2. The uniforms don't pop at all, like in S1 and S3. The FX looks washed out. Just an all around bad job by HTV. The only saving grace of S2 is that it still looks better than the SD DVD set by a large margin.
Glad I paid only $1 for it. If I hear that HTV is doing future seasons, I'll be skipping those as well, and getting only the seasons that CBS-D does, or does the "conforms" for, like in S4 which I have high hopes for.