This is obviously an old article.
For the sake of having a balanced argument, I'd like to fix a few things.

The cost of blu-ray players has gone down quite a bit.. now running around 200-300 dollars.

ICT - Image Constaint Token still hasn't been used.

The format war is over. Blu-ray won.

Some blu-ray movies now come with a portable digital copy to be used on things like the PSP and I-phone. (who cares... but it is there)

The jump from VHS to DVD was dramatic and obvious... The jump from DVD to the next generation does not provide any benefits other than higher resolution,
Actually quite incorrect. The jump from DVD to HD is actually *much* higher than the jump from VHS to DVD.
Not only does your resolution jump 5 times higher, it uses less compression for video giving you a clearer picture, but less compression is used for audio as well. So while you may not be interested in adding speakers to you're setup, the ones you do have will sound a lot better. (audio was a bigger factor for me than video for getting a blu-ray player).

While it's true that you can get a 1080 picture on a dvd using some of the new compression formats, they are highly compressed and are no where near blu-ray quality. They would also require all users to buy new machines that can play them, and new discs that utilize them. So there is really no upside to this over blu-ray anyways.