I'm about to get a PS3, so I'll I won't make a statement on whether or not the video quality is enough to make the average consumer upgrade until after I've seen some BluRay Movies, but I do think that BluRay will have a much harder time being adopted by the average consumer than DVD, simply because the upgrade from VHS to DVD included a lot more advantages to the normal consumer than just improved video quality, like:
1) Media size, compared to VHS, the DVD is much much smaller. This is a huge benefit to the amount of room needed to store a collection. I remember some of my friends parents had entire bookcases filled with VHS's, upgrading to DVD freed up a lot more space in an apartment or house.
2) Scene Selection, remember when you wanted to skip to the end of a movie, or trying to find a specific scene? Remember fast-forwarding for 5 minutes, 10 minutes? Remember being charged $2 from blockbuster for not rewinding the movie before you returned it? Yes, this was an actual issue, towards the end of VHS, movie rewinders were even being sold because of VHS players that had lost the ability to rewind.
3) Bonus features - With VHS, you got the movie, and some theatrical trailers. With DVD, you got the movie, trailers, plus you could watch it in french, english, spanish, or whatever. You also could watch the movie with the developer commentary, watch deleted scenes, and other bonus features. Yea!
4) No more tapes eaten by the VCR, anyone who's ever had to buy a rental know's what I'm talking about here.
I can't think of any others, but the only extra I can think of from BluRay that would fit into this category is:
1) Scratched DVDs - Remember loaning your favorite movie or game to your best friend, and when you got it back it's only usefulness was as a coaster due to scratches, well no more with BluRay. The less orderly can leave their DVD collection all over the living rooms now with nary a care, and still have it play fine when they finally do watch it.
One more reason I can think of is anecdotal, but is usually my barometer of the casual market. When DVD launched, for most people in my family (parents, granparents, etc..), it wasn't a question of IF they'd buy a DVD player, but WHEN. I still have yet to hear anyone in my family even mention bluray, even though they all own HDTV's (and HD cable).
Currently Playing: Saints Row 2 | Battlefield 2 | Company of Heroes
Recently Beaten: Gears of War | Super Mario Galaxy | Darwinia | MGS4 | Sam and Max Ep. 4, Portal | Mirror's Edge | Uncharted | Mass Effect
Looking Forward to: Alan Wake | Splinter Cell : Conviction | The Last Guardian | Batman: Arkham Asylum | SMG2 | Mass Effect 2 |