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PooperScooper said:
but blu-ray players play dvd's...

 Yes, but if you haven't noticed they've already started rereleasing a number of older DVD titles again on blu-ray, in part to expand the library but also to just make money, since hey if someone will buy something once and I put a nice shiny new cover on it they might very well buy it again.

The problem with this is suddenly people see these movies on blu-ray and they don't look that much better. I think HD would really help itself by sticking to where it really shines, newer movies that can fully take effect of its abilities.