I'm not sure how much ignorance there is here.
The step from VHS to DVD was warranted, but took a damned long time, and there's still people using videos, and a lot of people using video recorders to record TV. I'd give video recorders a good 5 years before they're reduced to an insigificant minority.
Secondly, while I'm sure blu ray is a reasonable step up in quality, it only is, if you have the suitable equipment, which I'd wager the majority do not have. We need to remember we're quite the techy, advanced lot here at the escapist and not a cross section of society as a whole, and there's an awfully large amount of people who are quite happy with their old 21" old style TV and video recorder, or if not happy, not willing to shell out the amount needed to upgrade, for what is nowhere near the leap forward that DVD was.
Blu Ray is nice, but its basically more storage space, and better quality, its not a whole new idea like DVD was, and as such doesn't have all the selling points of DVD over VHS.
Also, not to sound like a Luddite, but is it needed yet? I've seen enough 2 disc DVD special editions where it's obvious they could have put it all on one disc, to know that movies just don't need 50gb of space, except in exceptional cases like the Lord of the Ring, and I seem to remember one of the Godfather movies came on 2 discs as it was so long.
From a gaming perspective, fine, if it's going to be used to gaming, but that's going to increase the time taken to make a game hugely, and of course push up costs, and really, how much more could you add to the next FIFA or MADDEN, apart from what I think will happen to nearly all blu ray games, that they'll just pack them with hi res FMV to warrant using the format.
I'm already seeing a Metal Gear Solid Sequel where it takes 3 hours before you get to move your character instead of half an hour, because they realised they can force even more plot on you, in HD this time!
TL;DR Version, I don't believe the masses will see Blu Ray as having enough advances to warrant investing in the new technology, but hold out for a new idea that will come after it that will bring extra utility and ease of use to everyone.