Here are some of my thoughts:
1) I own a PS3 and 3 Blu-ray discs.
2) I don't yet own an HDTV but was eying one for my wife as a Christmas gift
3) I own a 30" Dell monitor and a 24" Dell monitor. Both are way beyond 1080p. Regular DVD's look like CRAP on these monitors. Blu-ray discs? Spectacular. PS3 + Dell monitors at max PS3 res + Blu-ray = sublime.
HDTV's in Ottawa anyway, are FLYING off the shelves. My city is a bit of an odd microcosm. We aren't hit as hard financially as many other major cities in North America because we are a major government town. We have the most lawyers and politicians per capita outside of Washington DC. We have the second most PhD's per capita in the world, second only to San Jose and we have the most degreed people in the world. It seems that a combination of the above and the fact that we are the Silicon Valley of the North means that the citizens here can continually afford toys. HDTVs are among them. Video game systems another. PS3s sold very well here and I think many purchased HDTVs to go along with them. Blu-ray discs at our local Best Buy and Future Shops are hard to keep in stock and the prices are INCREDIBLE!
2 disc sets with 4 films with no extras = $20. These are great package deals with A list actors and top 100 films. We have complete tv seasons for 20-30/season, the same or cheaper than the DVD counter-parts. First week release prices of Iron Man for instance? $4 more than the DVD.
The prices are very competitive and the extra resolution worth it to most around here it seems. Certainly our little 1 million people town isn't the world market but it is a good indicator that a strong economy and an educated population can and will buy the good stuff.
I'm not an obsessive videophile at all. I barely watch tv let alone movies so I'm not overly concerned with the technology overall, but there are films I want released (LOTR, Star Wars etc.) and that I'm willing to buy and replace my DVDs of only a handful of years old. Still, the quality seems to be quite a bit better in terms of gains/dollar than SACD or DVD-A was vs. RBCD. Instead of going SACD or DVD-A (until I got the PS3), I went vinyl because I think LP's generally sound better than SACD or DVD-A and significantly better than RBCD. But with video, no way analogue is a win win there. Laserdisc died, VHS was awful and Beta had no releases (much like Laserdisc). DVD was an incredible value and Blu-ray is nearly as perfect a 2D image can get. Any new revolution in video will come in 3D display technology. Blu-ray I believe will be the end of optical formats unless 3D hits the shelves. Can videophiles keep the format alive? If we look at laserdisc, the answer is no. But then, DVD was so much better than laserdisc that it isn't a fair metric to use. Blu-ray provides more gain over DVD than DVD had over laserdisc (though less than DVD had over VHS).
Regarding this article...too much hyperbole in my opinion. LCD and Plasma tv's are incredibly cheap for massive displays. <$1000 for 42" name brand 120 Hz units. Incredible! <$2k for 46" and around $2k for 52" units! These are prices I saw in the flyer for local shoppes just yesterday! Sony Bravias! This is with the CAD falling to 75% of the USD in a month when we were essentially at par! I can't imagine what amazing deals one could find online in the US this Christmas. At those prices, with a great amount of PS3s worldwide and a decent amount of Blu-ray players, the Blu-ray discs will move and by next year, make a huge dent in DVD sales.