I get your point, just to play devil's advocate though: up until a few years ago, there was an often repeated argument that "the human eye can't see more than 30fps" (it was used to justify the fact that many console games were capped at 30fps back then)... Today, many gamers use a 144hz monitor and would never go back to a lower refresh rate.
I wonder if the same story will happen with regards to lossy video compression, I mean perhaps, once our tech will be so much better that we will be able to use lossless formats for video, people will look back at the formats we have today and think that they look bad.
Remember VHS? I used to think they looked alright back then :-)
I think that the lower adoption of Blu Ray vs. streaming is purely due to convenience, not quality. Most people don't want to deal with physical media. In the same way that uncompressed audio is better than Spotify and similar services, yet almost no one buys audio CDs any more.
In Audio, there are now services that let you download uncompressed and/or lossless audio (Bandcamp, Beatport etc.), they are not as mainstream as Spotify but they are moderately successful and have their place in the market.
I wonder if the same thing could happen for movies: offering higher quality downloadable movies, without the physical medium. Perhaps cinephiles could be interested. Maybe it will happen when average bandwidth, at least in the developed world, approaches the equivalent of a 4K Blu Ray bitrate: no one wants to wait for a long download to end, people want just-in-time streaming.
(Note: Blu Ray, unlike Audio CD, is not lossless, it's just that it's got much less compression than the typical streaming services).