Blu-ray sells in tiny numbers (less than 2% of the total annual DVD sales).
Of course 'the industry' and their retailing outlets will keep claiming Blu-ray is 'it' - the margins on Blu-ray are so much higher (and are intended to be so for some time yet).

What they are really peeved about is the mature DVD market where almost no-one (sensible) buys new DVDs at day 1 release prices, they imagine they are going to remedy this reality by getting a mass switch to high def.

The problem they have is, that for the vast majority of us who do not have the slightest interest in turning our homes into a mini-cinema, the DVD upscaled looks pretty good on the type of HD TV most of us will ever bother with (ie a 32" - 50" set).

The other big benefit they tout is the improved audio standards.
But how many are seriously prepared to splash out the large sums necessary to enjoy those, huh?