I'm personally a big skeptic of digital distribution replacing optical media anytime soon. I don't know about y'all, but I like to trade movies with friends, resell them, play them in the car, etc, all things that are made much more difficult if not impossible in a digital distribution only world. Same with games. I like to sell my games when I'm bored with them, something which is impossible with downloaded content. Hence why I buy the bare minimum online.
You are so right.
Hi-Def movies via Digital Distribution is Blockbusters problem just like it used to be with SD.
Those that want to own the movies will still prefer a disc and a box.
There has been Video on demand services for a long time and they didn´t kill DVD. I don´t see why all of a sudden this should be a problem.
Yes in 20 years who knows what will be the standard (if there is any). Will we have Jigaconnections that allow us to stream 2xHiDef in realtime? Chances are that a console will be connected to such a service anyway Who knows and right now i couldn´t care less.
What i do know is that the Blu-Ray format matches HDTV perfectly. And i think that during the HDTV generation we wont really see any new broad launch of a new media standard. Maybe some niece market will turn up for 4k home devices but as i said it wont be mass market stuff