Tsk, Tsk. The internet is not the only means of delivering HD content. You must remember that Cable TV already offers On-Demand. I have also viewed (and saved to my PVR) HD Movies. The issue is not internet downloads only, but it includes the ablility to bring HD content into the home in a convienient and efficient manner. The Average Joe that may aquire HD capability will make fewer visits to the local Blockbuster if he can just click a button and receive his HD content directly to his box. This saves on gas (no need to travel with gas approaching $3.50 a gallon), its instantly convinenent, and it delivers HD content.
I know, all of the nice new codecs and such are not available - but more than likely - Joe average doesn't have the system to properly decode this anyway. My wife couldn't tell the difference between HD and SD until compared side by side (I could see it instantly) - and even then she didn't care!
I can possibly see BD becoming what vinyl is today. A nich that never dies (that's a good thing). I've looked at a nice phonograph that I owned years ago - it was a classic Denon. I bought it from someone in the military for $150.00....It sells for over $400.00 now - used (wish I hadn't sold it).
How many of us on this forum own a cd player that's separated into transport and DAC (yeah, Kennyt, I believe you do if you have Wadia gear)! But real world - not many - but it hasn't died - I want an analog tube stage CD player myself (plan to get it this summer).
Convinence and convergence are the key to the average joe's heart - and if HD On-demand, by either cable,sat, or internet delivers, they will win the affections of Average Joe's everywhere and leave BD to people who participate in forums like this - people like you and me.