Comparing the amount of shelf space dedicated to Blu-Ray disc at our local Media Markt store to last year (not counting PS3 games of course), it's now 10 times bigger than that of Blu-Ray and HD DVD shelf space combined last year.
Retail adoption is happening fast, as SDTVs only last so long I think eventually a vast majority of people in developed countries will own HDTVs in the coming years. Those who have seen a good Blu-Ray movie on a good HDTV are usually amazed by the difference in visual quality.