A couple of things: Most Blu-ray discs require an internet connection to play on most players and PCs. (don't really know why, but discovered this at work.) In order for this to happen, the DVD and BR makers are going to have to ramp up quite a bit.
Personally, I like the disc options because of no commercials. However, it does take us back to the storage problem and surely they will start putting commercials on the discs.