Bboid: I'm not belitteling the picture or sound quality of Blu Ray. I've seen it in action and it provides a near theater experience, it's quite an accomplishment. I'm of the opinion that any true movie buff, any hardcore videophile *must* own blu-ray. No question.
However,
The leap in quality from VHS to Laserdisc was more significant, as it could be seen even on the smallest, crappiest TV's.
Laserdisc was by no means a failure, videophiles loved it, and it existed up until something better came out. It just never caught mass appeal.
My point is that no format has ever caught mass appeal based on picture or sound quality alone. If blu-ray does it, it will be the first in history.