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I think for most people 720p would be enough, for streaming purposes anyway.  According to wiki (yeah, I know... but it's an easy reference) a bitrate of 20Mbps is enough to deliver 720p @60fps using H.264 codec.  Now, I agree, that's still too high for most Internet connections, but we're not that far off.

As for the non-tech savvy - well, most of them managed very well with digital audio, and Apple made it easy and convenient for the media to be mainstream.  Why should video be any different?  I think with the right hardware and distribution systems in place, even the non-savvy will find it easy.