I agree. There's also the fact that a lot of people LIKE to have a physical copy of things. Computers can crash and hard drives can be accidentally wiped, that doesn't happen to a disc on a shelf. Why do all of the people who think downloadable media is the way forward think that cd and dvd writers became so big? People like to back things up and have something that won't disappear if they get a virus and need to reformat.
In my opinion, it's much more convenient to pick up a dvd when I'm out than to use up my internet bandwith downloading something, and then needing an extra hard drive so I can back up all my movies "just in case".
I'm glad to hear that Transformers is coming to blu-ray, it was one movie I actually wanted to see in HD but I have a PS3, not an HD-DVD drive.