I don't think blu-ray has failed or will fail soon. It's an awesome format and with rapidly falling prices it will continue to stick around. Sure, it'll never be as big as DVD (I don't think, unless DVD is gradually phased out) since most people buy smaller sized displays and the difference is not really noticeable when you're sitting at a normal distance. For larger screens it's a very nice improvement.
I bought the badpod edition AND the Canadian Future Shop steelbook blu-ray the other day. My fiance says I can only choose one and have to return the other... On one hand the steelbook is only $30, whereas the badpod is $60. The coverart for the steelbook is that stupid batcycle poster whereas the model of the batcycle is way cooler... is it worth an extra $30 though? Keep in mind, I have been collecting steelbooks for a few years already and have one of those IKEA glass cases full of movie/sports memorabilia.
Wow I guess the DVD format is still alive and well with those kind of sales. 2.4 million copies of the DVD sold in one day? Insane!
^Yeah, I've never seen BD's in Canadian grocery stores. HOWEVER, as a pretty much weekly blu-ray buyer, I have seen a sharp uptick lately in people walking out of stores with blu-ray discs. There's a heck of a lot more people buying HD media now than there was even a year ago.
I love bluray! How I see things panning out are that bluray prices will continue to fall till they cost the same as DVD and that goes for the disks too. By then we will then we will be looking for a format that can store movies in quad hd ( http://en.wikipedia.org/wiki/2160p ). For that I think you might be either looking at new technology such as 16layer disks (400gbt), Holographic disks or maybe we will just stream content from the web. Till then I will keep buying Bluray.
Grocery stores? DVDs are overpriced at grocery stores (even the used rentals they sell). I can't imagine what a Blu-Ray price would be there.... though it'd still be lower than Borders, Suncoast or Barnes & Noble.
We've just started selling Blu-Rays at my store, and they're the same price as you'd get anywhere else.