First, BR, contrary to what it's reletively small marketshare may suggest, has actually been increasingly more rapidly than HDTV adoption (which is a necessary component to blu-ray as SD TV's make the tech pretty much moot). Only about ~12% of US households have HDTV's, whereas blu-ray has about 8%. While that may appear to be pretty small, remember that HDTV's have been around a lot longer (and weren't stifled by a format war).
You forgot to mention that HDTVs have been declining in price over the last few years. That is also a major reason why they are on the uptake, now
that they are cheap(er) while before they were very expensive. Only two years ago it was impossible to find a Full HD set in South Africa, ok full HD panasonic Plasmas cost R120.000. A 720p plasma 3 years ago would cost you
R45.000 while EDTV plasmas went for R25.000-30.000.
In contrast full HD projectors have remained very expensive. A full HD projector at this stage would retail for about R95.000. We can see that despite the increase in BD people are not scooping up HD projectors but
are mostly buying sub-R15K HDTVs (both 720P and 1080P).
Cheap prices mean LCD and plasma growth:
HDTVs are set to grow to 241.2 Million units by 2012.
http://www.isuppli.com/newsdetail.aspx?id=19663
With that in mind, let's look at the HD mediums: blu-ray, solid state drives, and streaming/downloadable content. Pound for pound, solid state/flash memory is considerably more expensive than BR discs and far less scalable. Simply put, I wouldn't expect to see 25 and 50gb flash drives for the single digit prices that BR discs go for any time soon.
You missed one. Yes D-VHS. D-VHS provided 1080i HD video plus one
was able to record HD source. Despite this, and the availability of 1080i
HDTV services, even the Japanese 1035i analog HD service in the early
90's - HD sets were few, most likely because they were very expensive.
Sure you'll always have people who think that DVD is "good enough" but to say there isn't a noticable different is just flat out incorrect.
The major reason for having HD is to achieve a huge picture, which has the sharpness of current SD signals. Yes, its cute to have an ultrasharp picture on a small HDTV, but you have to sit within 3 screen heights to resolve the picture with your retinas. The major benefit is to achieve a HUGE screen - a home theatre look and cinema experience, for that a super expensive projector is needed OR a HDTV set of 60 inches and more, depending on
room size - both of those are still very expensive. The price for a Pioneer
Kuro plasma at 55inches full HD was about R100K this month.
BD while pretty is not revolutionary for small set sizes. To achieve the full HD
glory a big screen, which takes the full horizontal field of view is necessary or at least that's the idea behind HD. HD in smaller screen sizes is pretty, and being able to see individual hair follicles on an actors face or make out the writing on a newspaper lying on a table in a movie scene are groovy but
not worth the need to have a new format released for - unless one considers
that BD is a great gimmick to re-sell the same DVD content again (at inflated prices)
