I do think online streaming is the ultimate end goal. but based on my current and past internet experiences, I figure i'm at least a decade away from trusting my internet to stream 1080p BD's flawlessly, and in as many rooms as is desired at the same time. the simple truth is that if I currently stream anything more than about 750kB/s my internet browsing becomes pretty much non-existent.
it would be ideal to be able to either 'own' these movies that will be stored indefinitely in 'the cloud' for me to access anywhere, or have access to all of them for a small monthly price(similar to Netflix I guess). but there's a LOT that needs to improve with the infrastructure before that's a realistic option. at this point it'd be like me buying a hydrogen powered car. it's sweet in theory, but I couldn't use it in practice.
so for now, yes, I think we need larger capacity discs, because I know they aren't going to let me download movies onto HDD's, and really, it's going to be a while before it makes financial sense to put 300gb movies on to HDD's
Displays: Samsung PN64F8500/JVC X35
AVR: Pioneer VSX-1130K, 7.1/5.1.2 audio
Sources: HTPC(Enby), PS3, XBOX360, Wii
Control: Harmony One