If I'm reading your question right...
You want to know why a DVD upscaled takes up the same amount of space on your tv as a blu-ray?
Std dvd is 480 pixels high. If you upscale it to 1080 it "creates" the additional information and will be bigger. The benefit of Blu-ray is that it is showing the picture in 1080 resolution. Everything looks as it is supposed to and not artificially created. If you are watching in Normal mode, then you are fine. Zoom and all that other BS should be avoided IMO.
Full is essentially taking your 480 signal and stretching it to fill the screen. This isn't needed with blu-ray because its 1080 and already fills the screen.
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