Very hot off the presses. This was just said a couple of minutes ago in his laptop presentation. Keep in mind that Apple has a seat on the board of directors of the Blu-ray Disc Association. They also sell movies on iTunes, which I guess competes on some level with Blu-ray. Either way they make money I suppose.
http://www.engadget.com/2008/10/14/live-from-apples-spotlight-turns-to-notebooks-event/
10:56AM "Blu-ray?"
Steve: "Blu-ray is just a bag of hurt. It's great to watch the movies, but the licensing of the tech is so complex, we're waiting till things settle down and Blu-ray takes off in the marketplace."