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Girl Gamer Elite said:
DVD didn't require a new TV in order to reep the benefits of the improved format.

Blu-Ray requires a HD-TV to get any significant improvement over DVD out of it.

Where as DVD offered inumerable advantages over VHS, Blu-Ray really only offers two, better sound and picture. Can cosmetic differences really justify a new format?

Well, cosmetic changes do justify a new format.  That's why regular TVs are going the way of the dinosaur, analog receivers for TVs will be phased out by the new year, and more people are buying HDTVs.  The same argument could have been made to go from black and white TVs to color.  It was only cosmetic changes, but as you can see, it still changed.