I don't have a blu ray player. I watch almost everything as a stream or download and don't want to clutter up my house with any more plastic disc cases. The difference in video quality between Blu ray and iTunes movies isn't important enough to me to be worth the clutter, and the flexibility and kid-friendliness of iCloud is a major plus over physical media.

That said, it's remarkable how difficult it can be for most people to watch a video file on their TVs. People learned how to deal with mp3 files but a comparable revolution never happened with video. There's just too much of a barrier involving needing special boxes, correctly-encoded files, etc. Burning a disc that you can just insert and play really is the best way for almost everyone to watch these.