Earlier quoted context omitted.
I think you address an interesting market that will still need disks. The home-theater geek. It's not yet practical to stream the amounts of data necessary to play a full 1080p movie for 2+ hours without any noticeable degradation or stuttering. For now, if you want the best, you need a Blu-Ray drive.
If I had a place to stream it from, I could easily stream an HD movie with my connection. It's not like in the future /less/ people are going to have fast internet!
A Blu-Ray disk holds 50GB. At a 10Mb/s connection (fairly common in the US), that would take over 11 hours to download, assuming no interruptions. Even at 100Mb/s it would take about an hour. Assuming you're streaming 2 hours of content you only have a 2:1 ratio of play time to download time, and that's still assuming no service interruptions. Most consumer ISPs promote their max burst rate in their packages, but for larger files kick the actual speeds down.
But again, there's no reason to assume the situation won't improve in the future, even with the exponential growth in number of devices online and increased usage per device.