Typically the internet infrastructure in most countries is not sufficient to allow practical delivery of high definition content. So HD IPTV is a long way off for most of us. The preferable and most practical method of distribution for HD content is still optical media and that is why we had a format wars between blu-ray and HD-DVD. Conversely, I personally believe that optical media will one day be replaced by solid state media and not downloads due to the reliability of the medium which makes it desirable. But by that time we would all probably be watching autostereoscopic displays which would make optical media and solid state media again more desirable than downloaded media again.
Also so much investment has taken place within the production and distribution of blu-ray technology that it has zero chance of losing support. The key to winning format wars is Content and blu-ray has been invested heavily in just about every distributor and producer going so it's hardly likely to be abandoned for the next few years.
So in short - Blu ray will be with us until sales drop... which is at least five years away, perhaps even ten methinks.
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