I think the jump to Blu-Ray is almost as big as the one from VHS to DVD picture quality wise. I really notice know how bad of picture quality many things on TV and even some regular DVD's have after watching several movies in high definition. Early adopters are still the only ones in the market, but that is changing, and will change this Christmas. Might even boost PS3 sales some depending on how it is priced compared to standalone players.
But it was convenience more than picture that sold it. In terms of ease, having an in-movie menu is not as big a leap as having a menu AT ALL. And do blu-ray or HD-DVD allow shorter scene skips than on DVD, so you don't have to scan as much? That's the only thing that could compare with never having to rewind a DVD.
This is the issue with HD discs. It's not about picture quality. It's that there is little else.
A flashy-first game is awesome when it comes out. A great-first game is awesome forever.
Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs