Yet again people miss the point with blu-ray. It is not about the definition of the movie on it, it is about the amount of data it can hold.
DVD is good enough for 99% of the people out there. With the fancy up scaling techniques in modern HD players/recorders you really do not need to fork out all that money on blu-ray.
The only reason blu-ray has to live is to close the gap between optical storage and magnetic/flash based solutions. Currently optical is stuck where magnetic was 10 years ago. When DVD came out it could hold more data than the hard drives of the day, but since then optical storages has fallen behind by a long shot.
Blu-ray will bring optical storage up to 25gb (1/40th of leading HDDs) which is at least a step in the right direction.
Movies? who cares about that anyway - we have DVD for that.