I may be an HD-DVD fanboy but I recognize a good deal when I see one. When the sale is right (and you have to actively look and hunt for the bargains, not wait for them to drop on your lap) some excellent Blu-ray movies can be had for an obscenely low price. During the Black Friday weekend amazon.com was selling the Bond movies at less than ten bucks each if you ordered all six! Right now you can get "Wall-E" and "Prince Caspian" on Blu-ray for less than 38 bucks and w/o tax (depending on the state you live). At most B&M stores you'd have to pay that much for just one of them. If you value the movie experience enough to invest good coin on an HDTV and decent surround sound then the boost in AV quality you get from Blu-ray is a phenomenal deal, especially when prices are either the same or lower than regular DVD. And no, "Stepbrothers" isn't worth $26 on any format!
I'll tell you what is hampering Blu-ray big time is the incompatibility of stand alone Blu-ray players with a wide variety of Blu-ray movies (particularly the one's with BD Live content). I'm on a budget and wanted to buy a co-worker a Blu-ray player as a Christmas gift, but there's no $200 player I can give to him with the peace of mind that most (if not all) Blu-rays out there will play on. Most of the below $200 BD players are older models and/or only 1.1 compliant models, which often crash because of how some movies are encoded. Even some 2.0 models (like the newer Sharp and Insignia models at Best Buy) are crapping out with movies that should be playable everywhere (google 'For Your Eyes Only' Blu-ray incompatibility
for the most recent fiasco). The only Blu-ray players I'd feel comfortable with are the Sony BDS-350 and Panasonic 35 and higher, but those go for $250 or more. Until the PlayStation 3 continues to be the only bulletproof Blu player out there (a game machine running a distant third behind Wii and XBox 360 this holiday season) only AAA mega-blockbusters like "The Dark Knight" will sell over a million units, and mostly to owners that happen to fall under the commonly referred to as 'PS3 demographic.' Not the type of folks that will rush to buy chick flicks, documentaries and/or general type entertainment on Blu versus cheaper DVD alternatives (especially in this economy).