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but have you ever thought that the DVD quality might be good enough for many customers?


What is good enough? In short time most people will have at least one HDTV. DVDs look good on it, on the other hand BluRay discs look even better and are the only medium that really shows what a 1080p TV can do.
The question is never "What is good enough" but "How much are people willing to pay to get it". And once BluRay discs and players are in the same price range as DVDs are now, that will not be a question anymore. Good enough is a construct that works in no circumstances: Hey who needs a Mercedes isn't a Volkswagen good enough?
In Europe BluRay discs still cost 30Euro, so this will take some time. You can argue and I would agree that the increased quality is not worth the price increase (But luckily there is amazon.co.uk)