OK, the vocabulary nit-picker comes out in me. Words seem to be interchanged a lot these days, and I think it's the source of some of the confusion here. "Stretch" and "Squeeze" are not interchangeable. They have basically opposite meanings. So, to me, you can't "squeeze" an image to make...
The anamorphic processing of the projector stretches the image vertically so the 2.35x1 image is now 1.78x1. Then the lens technically stretches the image horizontally an equal amount to get it back to 2.35. The goal is to end up with an image that's the same height as a 1.78 one, but is wider...
OK, everyone sit back and savor this moment.
Ready?
I agree with Sam. Still, knowledge is typically a good thing, and at least knowing about and understanding the options can never hurt.
Remember John, this results in constant image height (CIH) which isn't practical for most home situations, but is how theaters at least used to be. I remember that moment of excitement when the trailers would end and the side curtains would start opening up for a scope movie. Marveling at how...