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Interesting -- perhaps I'm characterizing the issue incorrectly then. Basically I had several DVD images created in iDVD and only one of them didn't play when mounted. The only difference I could find was that the non-working one showed up as being ISO-9660 in Disk Utility while the working...

The reason I wanted to convert is because there seems to be a difference in behavior between an .iso and a .dmg, specifically one in Universal Disk Format. With a .dmg in UDF you can mount a DVD image and then play it directly using DVD Player (File > Open DVD Media) without having to burn it...