I agree with those in favor of bluray. When done correctly, it's the closest we've ever come in home video to having a 35mm print to screen in your home (it can even show film at it's native 24fps!!) I watched the bluray of North by Northwest recently & it seriously felt like I was watching a newly struck print in my living room! And I also agree that the bigger the tv, the more film-like stuff looks (assuming it's a good tv & is set up properly). If you're watching this on a 32 inch Vizio LCD, then of course it looks "wrong"! You get what you pay for...
I remember these same arguments when DVD started gaining popularity. I specifically remember my sister saying they were just too "clear & sharp looking" that it was unnatural. Then she said the same thing about bluray/HD the first time she saw it. But the fact remains that when you go to the movies today, you're still seeing a higher resolution image than even 1080p (again, assuming it's a quality print...or digital presentation I guess... and that it's being projected properly - something that seems to be becoming rarer...) but you don't see complaints about properly done projections in movie theaters looking "wrong" or "too clear". Again, I think this is partly because size does matter. Really high resolution images tend to look odd when squeezed down onto tiny screens.
Regarding HD video, I agree it can look strange when the production values are low or the people doing it aren't very good at it. But then, video has always had a tendancy to look "off" compared to real life and poorly done HD video just exacerbates these issues, imo.