One thing i just thought up is that Blu-ray has ONE big disadvantage and that is that the medium is not a huge leap above its predecessor.
The DVD offered MANY stuff that VHS tapes didn't have. It had neat menus, the video quality was VASTLY superior, it offered multiple language tracks, it offered multiple sound options, it offered extras and bonus features, you didn't need to rewind it, it lasts far more than VHS and if you got lost during a movie you can just skip a chapter instead of rewinding everything in order to find the scene you want.
What does Blu-ray (or HD DVD for that matter), offer that DVD doesn't? Better picture? True, the bigger capacity does allow it to store more video and info, but in the end, is it worth paying 800+ or more for it?
Even the average consumer will realize this.
Hell, even my parents, who are OBLIVIOUS to the world of technology, saw a news story on the PS3 launch and after hearing the price they said "What makes the PS3 so damn special that its worth 600+ dollars?".