Well, I think there is no one easy answer. I agree that the world is moving towards digital downloads/streaming, but this is because the convenience of this means of distribution outweighs the quality factor videophiles crave. Let's be honest, the average joe does not have a 70foot rear projection set up with a 7.1 surround sound system pumping 500 watts in each channel. Most people have a 32" 40" lcd tv with no stereo hooked up to it. For a lot of people, watching a compressed netflix stream or an itunes downloaded rental is good enough.

Now, of course, this isn't the end all be all. Some people want the highest quality available to them, and bluray offers that. Take a look over at avforums, people will go nuts if the original mono mix of some classic film is not available in uncompressed PCM, but "only" in 448kps dd.