Convert & Burn M2TS files into DVD format WITHOUT LOSS
Whatever else you may be facing, one big obstacle is the DVD players themselves. They're not designed to output 1080p. Even if you could get the image onto them in Bluray format, they couldn't output it. (If they're really Bluray players, then you don't need any hacks, just a dupe of the image.)

If the content is something they want to see, people will be pleased to get standard DVDs regardless of the quality.