I agree 100%. Consumers in general don't care about blue-ray. They're just not enough of an improvement over dvds to invest in.
Actually they do. My dad and I are in the business of Video editing and production. My dad is a videographer and video editor. He makes TV ads, Wedding videos, birthdays, anniversaries, rights of passage celebrations, everything. 8 out of 10 people ask him if he can make their video in HD. We were waiting for the format war to be over to adopt to a format and start producing Blu-Ray DVDs for clients. That time is now. So yes, consumers do want HD, they do care. I see it all the time. And if people didn't care, Holywood would not be pushing and would not support the HD format at all. As Reuters said, the format war was preventing HD video to be a multi-billion dollar business. People will care even more now that the war is over. They don't have to be scared to adopt a format without knowing if would loose the war.
DVDs only replaced VHS after laserdisc bombed. I'm sure there were people who thought laserdisc would replace VHS but they were wrong. There was also a much bigger gap in time between VHS and DVD than between DVD and Blue-ray, I believe.
As Adam Tyner pointed out, Laser Discs didn't bombed. Nor were they made to replace VHS. It was a completely different media for different purposes. Unlike DVDs and Blu-Ray.
On a side note, I find it amusing that both formats are made and spearheaded by two Japanese companies, yet their target market is US, with deciding companies as Hollywood, Wal-Mart, Blockbuster, Netflix, Target, Kmart and others. Its as if their own Japanese market and European Markets don't matter. I mean I know Hollywood makes most of the world movies and produces most of the DVDs, and Wal-Mart is the world's largest seller of DVDs, and Blockbuster is world's largest video rental, and Netflix is the world's largest online video rental, but they are not even fighting for their own markets. US is the only thing that matters to them.