Bluray will take off eventually
Bluray will take off and become the format of choice eventually, the problem is that the studios think they should be able to charge more for their movies on bluray than consumers are prepared to pay. When this is addressed the mass market will come on board. When DVD first came out, studios were able to charge a large premium for the DVD version over the VHS because the advantages of the DVD were obvious for all to see, but as time has gone by, DVD isn't seen as being so special and so they have had to drop prices. The difference between DVD and bluray are a little more sutle to the average man on the street.
Obviously, the studios see bluray as an opportunity to jack up the price once again, except this time people arent prepared to pay much more for a movie on bluray than they are for the same movie on DVD. Of course the studios see no point in spending the time developing this new format, if they can't charge a heavy premium for it, so they are bound to resist reducing prices. If the difference was a pound or two, and the bluray players were under £100 (which will happen eventually), then most of the population would come on board. So all this talk of bluray already being a flop and digital streaming/downloading to kill of bluray is BS. It's only a matter of time before the studios have to change their bluray strategy, bluray players to become more affordable and the mass market to come on board with it. After all much of the population has already bought a hd-ready TV and you'd find it difficult to buy a new LCD TV without it being HD-ready. The other issue is that with no competition (many studios decided to stop supporting HD-DVD and killed it off, remember the consumer never chose between the 2 format, it was made for us), their is nothing to push them into reducing prices quicker.