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There a lot of hinderences to Blu-Ray that Fanbois do not seem to get.

Licensing fees for independent movies are astromnomical compared to DVD. This is a big one since any library needs filler.

The difference is not really noticeable to many people if you don't play it side by side. You may not agree with this you may think that you can tell the difference and perhaps you can if you work with video at different rezs all day long. However if you upscale a DVD and people come over they generally don't notice until you pop a blu ray in and then not everyone. You know 96Khz sounds better than 44khz and yet people think MP3s sound better than CD's.

Apple not supporting blu-ray in FCP Pro. Again this helps kill the format many media people insist on working in a Mac enviroment(they do not need to but that is what is taught in schools today). Without full apple support once again the smaller films get hurt.

Digital Downloads are getting more prominent and faster and gaining steam. People who say Digital distrubition is a dream and says DVD adopaation didn't happen overnight and BR will win out because its adapatation is like BR is kidding themselves. Netflix watch now features are becoming more popular as well. On Demand on Cable and Statelite is growing at a faster rate and cables on demand does not require internet.

BR movies are expensive at a consumer levels compared to other formats. 35 versus 20 bucks for a new releases. You can get bargain prices if you now where to shop or you could just use netflix but once again the library is mostly bigger budget films rigth now.

This is not to say BR is dead. It is a successful platform that has the potential to grow and it shoudl see growth over the next two years but whether it can sustain the storm of cheaper hi rez options coming with less investment in HW and cheaper wuthoring techniques that will mean larger numbers of available titles is questionable.

If I want to author Blu-Ray right now I have use Encore(and limit the flexibility of how I author it) or Sonic Scenarist 3.5(and shell out 25,000 dollars). There may be others but nothing yet that i would use...no offense to Pegasys.