It's all about costs. If you had an option to buy something that is better for less, who would spend more money on something that is worst and cost more? If their claims of the cost of the product being in-line with current DVDs (players and media), why would someone buy blu-ray when the players cost up to 10x as much and movies cost over double? If they can actually do what they claim at the same cost of current DVDs do you really think people would buy Blu-ray over it?
The media can support up to 1920p, but it does not mean that movies studios need to support that. They can still put movies on at 1080p and still call it HD. Costs to upgrade current dvd production to the new format is low, and if all the costs of the new format is still less than what blu-ray cost, I cannot see why a company would remain with blu-ray.
