I understand what you’re saying but I don't think it is as far off as you say. Take a look at this link. These types of products just need investors with vision.
http://www.medeawiz.com/products/Dv68.htm
Now before you say anything, yes its DVD quality not HD, but this is a step in the right direction. I was thinking more of rentals as to owning and to tell you the truth the more I own a movie the less I watch it. And also take a look at how fast SD media costs have dropped. About two years ago you can buy a 512 SD card for $50 now it's what $25 and dropping. And if you’re talking about buying a Blue-Ray movie for $50.00 then what is the difference if you pay $50 for a BR or $50 for an SD, by a "Write once Read many" SD memory card (Please note this is made up as an example). You can buy the Quicken Tax program for $30 and get a 256MB jumpdrive with the software on it, so you see the companies are seeing the cost effectiveness of this type of memory.
Don't for get as demand increase the prices will drop (I still can't buy a 50 stack of DL DVD for under $25 how long have they been out?) Current DVD are about 8GB so an 8GB memory card I can get a great picture and all I have to do is plug it into my computer to get a new movie how cool would that be. Remember it not quality that drives the market is convenience & cost (look a NetFlix people don’t even what to drive to Blockbuster any more). I have an HD wide screen TV and I like the quality of my DVD I have no intension of buying either HDD or BR I just don't see a need and if the Movie industry would stop putting junk on the DVD disk and increase the quality of the movies the videos would look better (there is a 15GB DVD disk why not use that? I know, I know HD but how much space does a movie take? How much is junk?).
It is also obvious people are not concerned with quality because if they did then the movie industry would not have to worry about bootlegging. Many movies are over 4.7 GB but you find people shrinking the video and are happy with the lower quality videos. Don’t get me wrong I like a good quality picture but outside of the people in these types of groups the general population does not care of such things. They want the OnDemand movies and PVRs to record what they missed, they don't what to drive to the video store, and they are tired of late fees. They want it and they want it now oh and by-the-way they want it cheap.
Thank you again for reading.