From James Surowiecki:

Blu-Ray’s real problem, it seems to me, is much simpler: it’s too expensive. I’m not talking about the players, which are rapidly coming down in price, so that you can now buy a bargain Blu-Ray player for under two hundred dollars. I’m talking about the disks, which often cost seven to ten dollars more than a DVD of the same film. (Sometimes the price gap is even more outrageous: the Blu-Ray of “3:10 to Yuma” was retail priced at $39.99, while the DVD cost twenty dollars.) 

My TV can’t even display the maximum resolution that Blu-Ray offers (my little Samsung tops out at 720p), and I’m sure I’m not in the minority.