Isn't the customer allowed to make their own choices? Everyone has their own preferences and who's to say which are right or wrong?
I have avoided building a library of movie media since the days of chucking out all my old VHS tapes. I'm not one of those that constantly rewatch the same films anyway so renting makes sense for me. Those that I do buy are usually kids films since my son will rewatch things over and over. I was one of the early users of DVDOptions and now I use Lovefilm which lets me rent movies AND games.
So I only buy things that I feel pretty sure that I will watch again and when it comes to games then those that have 50 hours+ playtime.
But I have the choice. To watch a film I could
a. go to the cinema
b. buy the Blu-ray (the next closest thing to going to the cinema and costs typically less than the price of 2 tickets in this country)
c. buy the dvd (but I just can't bring myself to watch dvds anymore. The picture quality just doesn't stack up against Blu-ray)
d. rent a disc (Lovefilm sub costs £14/month for 2 discs including games)
e. watch it streaming... IF I can find a service that has that film and I'm prepared to spend my ISPs bandwidth cap watching it
f. watch it on a cable HD service...
Take away Blu-ray and you take away the 2 simplest methods of watching HD at home.
That said, this all sounds like someone making excuses for not putting a Blu-ray player in the XBox but who really cares about that? Players are cheap, so not having a player in the XBox is no real issue. Blu-ray discs are cheap these days also, some as little as £7.00. It took much longer for DVDs to fall to that price. Even new Blu-ray releases are typically £14.99 which was DVDs price point for new releases for many years.
If you want the best home cinema experience at home right now, Blu-ray is it. Maybe not forever, _definitely_ not forever, but surely we must realise by now that technology isn't an investment, it's an expense. Something better always comes along...