I love Blu Ray, and Apple products - broadly, the need for optical disc media is vastly diminished - I have several Macs, and have barely used any optical drive for some time now. Between broadband downloads, high speed LANs and even USB sticks, their days are numbered. So its inclusion is not really necessary anymore
BR is certainly better than streaming, though I think Apple's content has been getting progressively better. But lack of lossless audio is a big deal to me, so I don't rent too much from anyone. Conversely, not every title is worth owning, nor is every title a visual or audible feast, so streaming some content at a much lower cost makes sense. Lost of stuff my kids want to watch is done via Apple TV, and they are quite happy.
Where Blu Ray falters beyond its physical nature is the baggage of slow load times (though this is getting somewhat better), BD-Live/Java, many with an inordinate number of trailers, inconsistent menus across titles authored in various ways... It's rare, but how great it was it to but in the Avatar Blu Ray, and just press play? Far too few disc just "play." BDA licensing is apparently fairly onerous as well.
And of course, the physical media is not playable anytime anywhere on any device in your home...so this does not fit the paradigm of a media mesh that Apple is building - and that is the right approach.
It's why some of us rip our Blu Rays to play on various media devices within the home, to have the flexibility to watch what you want. when you want, without dealing with finding and loading discs from one room to another, and worrying about scratches and smudges, or simply getting lost). Right now, one can start a movie in one room, and pick it up in any other room, or iOS device. quite seamlessly.