.. blah blah, they sky is falling, etc...
The good deals on players and movies up to this point has been motivated primarily by marketing subsidies to encourage early adoption and not the reduction in hardware or software production costs. This FORMAT was has been a distraction from the start and I'm glad it is over regardless of which camp "won." It's stupid that we had two formats competing against one another for 2 full years rather than allowing hardware manufacturers to focus on a single technology and producing cheaper/better players and software.
Blu-Ray's biggest competition has been and will continue to be standard definition DVD's which, on most modern HD sets with a reasonable player, will look "good enough" for most people. Consumers have a hard enough time understanding the jargon associated with the latest HDTV display technologies and those who upgraded from a 4:3 SD set to a 16:9 HD unit are already seeing a HUGE leap in picture quality from their existing DVD player and movies. Unlike the obvious tape vs optical disc advantages of DVD over VHS tape (no more rewinding, well treated discs don't degrade in quality as you watch, instant chapter access, etc..) Blu-Ray doesn't bring any compelling usability features to the table that will compel people to make the jump like DVD did when it replaced VHS.
I predict a much slower adoption of Blu-ray versus DVD until the price of media and players is comparable. The gains in picture quality, outside of the enthusiast community, are just too small to justify the extra player and media costs. The new audio formats are swell, only problem is that most affordable players don't do onboard decoding and there are few affordable recievers that will decode the latest/greatest from DTS/Dolby.