I think blu-ray will win the format wars unless something completely unexpected happens.  However, they can't rely on the PS3 as the only means of getting it out.  There are only 1.44 million PS3 owners in the U.S.  and it will be a very long time before there are 20 million.  There are 300 million people in the U.S.  The only way blu ray can replace DVDs is if people start buying blu ray players in large numbers, and that probably won't happen until they're down to about 200 dollars.  By then the PS3 won't be the main thing playing blu rays.

As for what the topic creator said, I think there must be some retailers and publishers making a profit.  I do agree that a lot of people are not profiting on it, however.