I purchased a lot of Blu-ray movies when they first appeared, but now we have RedBox.
Blu-ray is still my preferred way to watch movies. Digital movies services have gotten better, the price to buy a digital HD copy is about the same as a Blu-ray, and the price to rent digital HD is higher (~$5.00 vs ~$1.50 from RedBox). The quality can be quite good for digital, but can be stuttery depending on the connection quality.
Blu-ray is a decent deal on Amazon US, but I noticed in Japan they are often asking $40 for a Blu-ray movie. How could it possibly dowell when it's sold as such a luxury item?