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Most people do not care about their audio/video 'experience'. It may matter greatly to some niche groups (avsforum), but those groups comprise a very small portion of the market.

I don't know how anyone could stand to watch a movie with a cheap 5.1 walmart system and a HDTV connected to a dvd player with composite cable, but a lot of people wouldn't have a problem with that. It's all a matter of preference and priorities.

I don't think that HD media will die, though it might be relegated to a status similar to what the laserdisc enjoyed.