MPEG2 compression is usually a lot worse than AVC compression in general, so usually lower quality at equivalent bitrates (it can vary on the quality of the encoder, for example some AVC encoders are very very bad)
(I say "pseudo" because AVCHD is supposed to be AVC, otherwise it would be called MPEG2HD or something. You can make a "psuedo AVCHD disc" on DVD5 media using MPEG2 compression.
Many retail blu-ray still use HD MPEG2 compression. "HD" refers to the frame size > 576 height. If you were referring to HD content on DVD5 media, you can use h.264, MPEG2 or VC-1 compression, but not all blu-ray or AVCHD compatible players can play them (as mentioned in previous discussions) The MPEG-2 is for standard DVD, right? Why can it be referred to the HD content on DVD 5 media, by the way? Yes, but MPEG2 can be HD as well.
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