I didn't give a thought to BluRay from in Xbox when buying (but considering I bought a launch system, HD discs were on a far disatant horizon)
And even now, still don't care. I did pick up the HD DVD add-on and put support to that, but it was unfortunately muscled out through backdoor dealings, even being a better format (same quality, maybe less capacity, but 1080p movies aren't that big. Reads faster and can run multiple play windows. I can't stand blu ray's load times)
But even now, I only buy bluray's of the biggest of effects movies to avoid loss from compression, and all the rest is all digital copy. Streaming from the media server that I rip everything to.
I feel that digital streaming is where the future lies as well. Discs are getting old, discs are wasting space. Yeah, it's great that you can fit that 18gb 1080p film onto a disc now, but tech has gotten to where you can fit 500 gb on a flash memory the size of your thumbnail. Discs need to just find their way to a landfill, it's 30 year old tech