Earlier quoted context omitted.
I've got a PS3, specifically for Blu-Ray, but I rarely use it for that any more. I use it for Netflix, and at this point any number of devices could handle that. If I were buying a Blu-Ray player again, I'd probably buy something else. I got a first-gen, when the PS3 was still the cheapest. But now it's not, and I don't game, and having to use a dedicated Bluetooth remote is annoying. Also there's no Amazon Prime app…
You're probably right about 720 vs 1080. You've go to be pretty close to see the difference on a 46" screen. I believe I read that someone with 20/20 vision has to be closer than 8 feet to see the difference on a 50" screen. If I was building a home theater setup with a huge projector (or giant LCD), dolby digital (7.1 now?), etc... then of course I want the best quality in everything I can get. A friend of mine has…
As for streaming, from what I understand, 720p is actually better than 1080p when streaming, because 1080p streams end up getting compressed to the point that they actually look worse than the 720p equivalent. Fuzziness from stretching the 720p signal is less visible than blockiness from 1080p compression. Blu-Ray obviously doesn't suffer from streaming limitations, though.