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The general reluctance to replace a DVD collection is exactly why sony put Bluray into the PS3, The trojan horse technique will win in the end. Any household that has a PS3 in it, even if its confined to the kids room is unlikely to go out and buy the competing format.
I personally can see the draw of HD movies, but its not enough of a draw to bother spending loads of cash. Especially with the 'availability' of DVD5/9 formatted .mkv