Blu-ray's success IMO is entirely dependent on PS3. My first DVD player was my PS2 in oct 2000. At that time, DVD players were almost as expensive as the PS2 itself but not out of a regular Joe's reach. However, PS3 will be significantly cheaper than any Bluray or HDDVD player when it's out in Nov 06. That could tip the scales in Blu-ray's favor. To me, the gain we saw from VHS to DVD in practicality, resolution increase, cool factor, far exceeds what High Def resolution can do over DVD. It was a revolution in media storage. Now it's simply an evolution. And people will only cater to it is if the format is well advertized (ala Apple's I-POD).
However, I don't think I'm alone in saying that I'm spoiled by Nintendo Gamecube's small optical disc, or the PSP UMDs compact size. It's only a matter of time before someone finds a way to stash 50gb of space on 60mm. That's what I'd really like to see.