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I think there is two problems with blu-ray... Price of device and price of content.

If DVD Devices and Blu-Ray discs cost the same why would you not buy blu-ray?

The fact is, people are not willing to pay a premium for the device and people like myself that have well over 800 DVDs at home are not willing to pay $10 more for a blu-ray movie. I like the technology, like the features, but I am unwilling to pay more to watch/use them? Definately not. Until the price of the devices are closer to DVD (sub $100) and the movies cost the same as DVD ($20-ish) blu-ray will struggle.