In that respect it looks like BRD inclusion has been vindicated. Sony used PS3 to establish the format and it worked. The financial success of PS3 has to be considered with respect to the financial success of BRD now, as if the net gains for Sony are beyond what a DVD based console could get (say comparable to PS2's success) then any losses in the console space are still a plus for the company as a whole. A lot now depends on whether the masses adopt HD or stick with DVD.
Considering things like netflix, blockbuster, Video Ave. Hollywood video, and dvd decrypting software freely available. Dual Layer dvds prices, the last bastion as most movies tried going DL to mitigate copying, is also coming down in price as all media is. Hollywood studios will try to FORCE a move as soon as possible, I think dvd sales are also going down, iirc, possibly as a result of rampant and ever increasing piracy.
Stronger DRM, and larger sizes to impede copying and distribution and thus piracy, are strongly desired by hollywood.