I suppose we could consider the majority of people on here as "target market" for Blu Ray, but with so many people reporting discs costing £25 and that being outrageous (which it is) it's clear there is an issue.... anyone who pays £25 for a disc is silly, there are hundreds of places to buy discs far cheaper than that, even new releases can be found for usually 25% off without too much effort:
Are the main ones i use, and check here - http://bluray.liesinc.net/ - to see which discs are not region coded so you could save by buying from abroad.
AppleTV is great, a lot of newer movies are coming with Dolby Digital, sure it's not TrueHD but for the "average" user it's perfectly fine... and seen as so many people above are saying that DVD is fine for them, then a downloaded movie with Dolby Digital 5.1 will also be fine, as it's the same... the fact that it'll be 720p will be an appreciable increase in picture quality too.
Oh and you can get downloads in 1080p with TrueHD, just not from a legit source... and a 45Gb (typical) download size does take a while even on my Be Internet connection
As for players, they're getting cheaper day by day, the current budget king is the Samsung BD-P1500 (http://www.amazon.co.uk/gp/product/B0016J72SM/202-3314281-8268652?ie=UTF8&tag=spoavetstu-21&linkCode=xm2&camp=1634&creativeASIN=B0016J72SM) is £163 and includes "I Am Legend" and "Ocean's Thirteen" for a Blu Ray player that is very cheap, it will upscale your DVD's too (sure you can buy an decent DVD upscaler for about £50) add in the nice bonus of converting HD audio to max bitrate DTS over optical or coax for those that don't have the latest amps... it's a result!
FWIW, i think Apple are right.... i transfer films to my Macbook Pro to watch, i wouldn't lug a series of Blu Ray discs around with me as it's just not worth it. Though i can understand the desire for Blu Ray recordable for archiving purposes, but a USB hard drive is pretty bloody cheap these days!