Tiptup said:
It does have problems with DRM and some poor quality hardware for the price (as lordjedi alluded to above).

The hardware's price and quality are right where they should be at this point in the format's lifespan. If they weren't, the hardware wouldn't be selling as well as it is.

I mean hell, the economy is in the shitter, Blu-ray is actually doing better than DVD was when it launched--which is downright amazing--and lordjedi will still tell you that the hardware is too expensive and the format's future is hazy.

What miracles will need to occur to convince the naysayers that everything is just fine?

Read. History...repeating.

For Blu-ray to lose against any competition, that competition will need to be either better or cheaper. I don't think better is really possible or necessary at this point given the limits of current consumer technology and visual perception. That leaves cheaper.

For cheaper to happen, studios will have to accept much less than Blu-ray retail prices for HD downloads. Much, much less. If my earlier prediction holds true, HD downloads will have to hit $9.99 for a feature film for a reasonable number of consumers to buy into it and abandon physical media.

Which is more profitable for a studio: distributing films digitally to content providers and selling them for $9.99 each, or distributing physical media to retailers and selling films for $19.99 and above? I'd be willing to bet that studios will end up making more profit sticking with physical media, and that's why they're in no hurry to kill the shiny disc.