Where did this guy get his stats? All sales data that I've seen during all of 2008 put DVD sales as slowing due to Blu-ray being on the market. No one wants to buy a movie on DVD and then later have to rebuy it on Blu-ray because the players got cheap enough. Even though sales are still huge, they have been lower than previous years.
Also, I don't know where he's getting his info about no DVD players being on the market near $129 during its first two years. I bought my second player, an Apex, in 2000 for $150. That player was released in January 2000. That's pretty darn close to $129 and the 2.5 year mark (right where we're at with Blu-ray). And that player was region selectable, so I wasn't locked into R1. DVD was released in the US in March 1997 (test market). Of course, I didn't have to worry about "upgrading" that Apex DVD player either. The $129 Blu-ray players he references are most likely either profile 1.0 or 1.1 players. They won't be able to play profile 2.0 content. And there wasn't a single profile 2.0 player available on Black Friday for under $150.
That article is nothing more than a pro Blu-ray gush piece. The news coming out of CES is that if Blu-ray doesn't take off this year, HD downloads are going to end up killing it or at least making it a niche market. He tries to address that in his article, but he obviously doesn't know what he's talking about. Verizon is pushing HD content through FiOS...today. Time Warner has HD on demand...today. LG just released an HDTV that can stream HD video from Netflix (just plug an ethernet cable right into the TV). The only companies that are having problems pushing HD content are satellite (DirecTV and Dish). They don't have the capacity yet to deliver all the channels that are currently available in HD, but they are improving.
I really hope Blu-ray does take off, but I don't see it happening.