A "long time" as in this fall? Microsoft announced at this year's E3 conference 1080p video streaming by this fall. All that's required is an 8mb internet connection.
Don't confuse a gold colored turd with actually being gold.
VC-1 has some people questioning the quality compared to AVC at the transfer rates which BD offers for video, which is often in the 30MBs range. 8mbs is simply not going to be delivering anywhere near the quality which Blu-ray has. They could call it 1,000,000p and it would still be extremely heavily compressed video, without HD audio, and not at the level which people already can enjoy.
I mean, people then talk about price and stuff, but really, how much more does it cost you a month to get BDs from Netflix or BB Online? Compare that with 5 or 6 HD rentals from iTunes (for example)... No real advantage, and a lot of limitations to the DD process right now.
It's only going to cascade from there.
Actually, according to a recent article, digital downloads have basically stalled, while BD has seen over a 200% jump, to a market which is already larger than DD.
(recent article:
http://www.videobusiness.com/article/CA6668382.html )
There is a LONG way for DD to go, and I do agree that it will happen, but not this Fall, and not likely in the next five years... By which time BD may be the dominant format.