Hi Fletcher, that was the original plan. Because they couldn't get pan European rights for all events, HD2 was launched so that they could broadcast selectively to countries where rights could be obtained.
I thought that HD-2 was part of the same deal as HD-1 - so a single purchase cost for the card covered it. The difference being that HD-2 will broadcast shows to only the areas that Euro1080 have the rights to, using encryption to block cards sold in/to countries where other rights holders have veto-ed carriage on Euro1080 in their territory.
HD-1 is available to all viewers in all territories with a valid card - as was made clear in the purchase agreement. However for an event to be carried on HD-1 every rights holder in every European territory (and outside) that Euro1080 broadcasts to (or sells cards to) for every event has to give permission for HD-1 to show the event. Until now, if one rights holder refused they'd not be able to show the event. Now, they will be able to show the event on HD-2, and just regionally block out countries where rights holders haven't granted Euro1080 broadcast rights.
This could mean that the Winter Olympics were shown in some territories in HD via HD-2, but in others they were not available because domestic rights holders are either mounting their own HD coverage, or just don't want audiences switching away from their SD coverage (and adverts...)
Just to add to what Stephen has said and put it in football terms.
Say the UK rights holder of the World Cup 2006 games agreed to let Euro1080 broadcast the event then Euro1080 could enable all their UK customers cards so they could receive it on HD2. Alternatively if the rights holder wanted say 5 per game per household then this could also be arranged. Each Euro1080 cardholder could transfer funds to Euro1080 who would in turn transfer the funds to the rights holder.