Personally, I think the biggest problem with physical media vs streaming is the potential for the physical media to get worn out. I would love to see the next generation of media come in the form of something akin to UMD, with an outer casing that prevents direct damage to the disc.

I HATE streaming/downloading, because while costs may be less for individual films, the cost of a new hard drive and fast internet come in large chunks, and bandwidth limits what you are able to view, despite those costs.

And its nice to see the blurays on the shelf :)