Well I just found this thread, Jarod, and I was looking at some of the postings Kosty made just a month or two back, and it looked to me like Blu-Ray has been making pretty decent market growth over the previous year AND over DVD.
As for streaming, I have a 30 megabit connection, which is fast enough for most streaming, and a Netflix membership, yet on the very few occasions I've chosen to stream my Netflix I've been quite disappointed with the quality. Rather, I almost exclusively rent nothing but Blu-Rays via Netflix (the rare exceptions being movies I've never seen, that look really good in their descriptions, and are only on DVD). And although I only ever bought ONE DVD player, and bought very few DVDs during the long period that format reigned supreme, I now have THREE Blu-Rays (since the prices broke $200, then $100 -- had to wait A LONG TIME for that). Similarly, I've had to wait for the disc prices to break, and I still never buy anything NEW ("Avatar was my ONLY execption). I wait until I see them for $10, or less, now, which doesn't take long -- "Inception" is now $7.98 at Sam's Club, for instance. Better yet, older movies I already had on DVD (some mostly for my aged mother who loves comedies, like "Grumpy Old Men" and "Grumpier Old Men,"). Well, BOTH of those in the same Blu-Ray package at Sam's Club yesterday for $798!
While I know there are LOTS of folks paying full price for the NEW releases, there are even more folks like me who are waiting for the "below-$10 and 2-or-3-movie deals... I've gotten a few great flicks on $9.98 disc packages. As a result, I now already have a bigger pre-recorded package of Blu-Rays than I think I ever even bought on VHS during its LONG life.
The folks who said Blu-Ray would be "just a flash in the pan..." I don't think so. The players will still play DVDs AND CDs... and even OLD classic movies are being released on Blu-Ray -- and I mean OLD. I saw an old B&W John Wayne movie that wasn't even one of his biggest hits, I don't think, at Sam's Club, as well.
With the way broadband providers keep raising rates and imposing caps, even while adding speed, I don't care WHAT USA Today says, I don't see physical media going away any more than I see everyone saving all their photos "in the cloud" (and I'll be doing that when I'm VERY cold and VERY dead).