The average consumer may like the concept of streaming HD - until they see the actual 1080p quality they can get on their 5mbit internet connection compared to a BD. It may be fine for a crummy "rental" movie you're pretty sure you're never going to see again, but if it's a movie I want to keep, collect and enjoy multiple times, then I want good quality.

So the average consumer may like the concept of downloadable high-bitrate movies - until they realize that it will take hours to download, you'd need a big hard drive array to hold ~150 movies (at BD bitrates), and they won't have that handy physical disc in case the device dies or is stolen, or for use at the cottage, or for the kids to play in the den.

I do believe that the future of media distribution is downloadable content from the internet. But not yet, and it's not close enough for anyone to ignore BD as being what's right for right now.