And every time that happens, I think of all the stupid discussions that use completely different standards to move the bar either intentionally or by accident.
I don't understand why anybody is talking about DVD vs BR.
Is there some HD issue all you PS3 users have with streaming data?
I'm talking about DD of 720p media. Not 420i, or 420p, or 420p upscaled.
I'm talking about people not noticing or caring about the difference between 720p and 1080p. And despite what you enthusiasts think about HDTVs becoming more reasonable in price, most people are still not buying large enough HDTVs nor are they putting them in rooms large enough that they will see any noticeable difference between 720p and 1080p. Which makes DD of HD content appealing, but means there's little need for the improved quality that adding another piece of hardware in order to get the physical media requires - except for enthusiasts.
DVD quality VS BR quality? Sure, nobody is debating that so light a match on your strawman.
As far as 'collectors editions' and whatnot, I'm sure the studios don't want to give up that revenue stream but why would they need to include a physical media in the package? Sell your little figurine with a set of codes that allows people to go watch the movies whenever they want via DD.
Resolution is not necessarily all that makes Blu-Ray impressive. Bit-rate is probably just as important, and where all competing forms of media fall flat (DVD, DD, etc). Resolution is pretty much meaningless without a high enough bit-rate to give a good quality picture.
Sure, it's good enough for most people, but even they can tell the difference.