Awesome example (if a bit large!) Josten.
I think people don't get that STUDIOS don't want to make two formats and there will be a point when the only DVD player anyone can buy at all, will be a Blu-ray player (with DVD support). Then when they go to rent a movie, they will be able to get either DVD or Blu-ray for the SAME price. So, they get the Blu-ray. Then they may buy one or two titles, and they will BUY on Blu-ray for near the same price. Then Blu-rays will be the prevalent format at Redbox, Netflix, and other locations.
It isn't 'sudden' but it is gradual. My non-A/Vphile family is about halfway to owning Blu-ray players and using them. They aren't big disc buyers, but they do rent and now when they rent, it's usually on BD.
I recognize that I was an early adopter, and accept that, but I followed the format war extremely closely with a strong opinion on why Blu-ray was going to succeed from day one. Which I was happy to argue.
Now, we get to the REAL format war, and the new kid (digital downloads) thrown in as well.
I think DVD will die. I think Blu-ray will follow, and I think digital delivery will end up as our destiny.
These are the three ways we will watch for the near future, but perhaps before this decade is out, DVD will clearly be headed out to pasture if not already 'dead' as a format.
VHS was 'dead', long before it was dead. It's still one of the easiest ways to record video content, but is all but extinct. The Kodachrome of video.