I dont believe anything significant will happen this generation. I do believe Bluray will be the *last*, dominant physical media. By the end of Blurays lifespan (which should be a loong time) its likely consumers will all have access to connections fast enough to download a full uncompressed high def movie in a convenient timeframe.
Only when this happens will movies on discs go the way of music cd's. People will store their movie collections the way they store music on a current Ipod.
It will happen, but not anytime soon.
PS360 ftw!
Currently playing..........
Gears of War 2, GTA IV Lost and Damned, Little Big Planet (Yes I said I had no interest but my girl wanted to try it and we did and now Im hooked )