The market responds to improvements in ergonomics and convenience more than performance often times. A new shiny CD-like disc replacing clunky PIA video tape made perfect sense, and the market responded. Incremental improvements to that major change will always remain the province of the enthusiast.
The market, IMO, would instantly respond to a simple, affordable way to place all media on to a simple hard-drive like device, with intuitive interface. These products exist, but are expensive and rely on integrators to perfect their use. The industry is made of largely enthusiasts, so they assume that the masses will follow their logic.
So, does J6P not care about quality? Well, put a $29 DVD player in their face, and tell them it will play any 5.25" disc they stick in it, and watch what happens(ed). Does it look or sound good? Nah, but it works. Unfortunately, the industry shoots itself in the foot so often with major format and technology changes, that it forces prices down on existing tech, in anticipation of its replacement. The consumer knows this (or cynically suspects it), so the biggest price point for today's DVD players is under $120. The industry can lament it, but doesn't seem to want to take steps to alter their habits.