UK prices but a PS3 is £300, a writer is about £160, write once media is about £8 and rewritable media is about £9. Its still fairly expensive but not extravagantly expensive like it was a few or so ago.

If you want the highest quality picture and audio then I guess you'd have to still get a disc of some kind. The HD downloads are compressed more than HD discs and also aren't 1080. I don't see people regularly sucking down 30+ GB just to watch 1 film at 1080p with less artifacts.

Unless you have a shiny new HD TV there isn't really that much point to buying Blu-Ray unless you want to be "futureproof"

I've got a PS3 and the only Blu-Ray movie I've got is Casino Royale and that was because it came with my PS3.