Realist? Really? You and Steve Jobs seem to think everyone has super-fast connections and an Apple TV! Or else you don't care about anyone who doesn't.
Physical media 'dying' is such hyperbole. In a grand historical sense, yes of course it is, so is everything. The question is not 'is it dying?', but 'when is the funeral?' and 'is its successor mature enough to take over yet?' You seem to think it is, I disagree.
How often have I thought about watching a HD film on my 13 inch screen? Every time I can't actually do it! Has to be a few times a week. You seem to be expecting me to buy a SD copy of every HD film I buy, what is with that? I'm away from home right now, but I can't bring any of my BDs with me to watch though, because Apple doesn't like me not buying my media from iTunes, even though it's not feasible for me to do so. That sucks. So my remaining options are - not enjoy HD films and just stick to DVDs, buy a Windows laptop that has a BD drive, or pirate an extra SD copy. None of those other options appeal to me. What would you do in the same situation? Ignoring the fact my internet access is not good enough for HD downloads (and unlikely to be for some time) is not a good answer!
And Blu-ray sales are on an upward trend not the opposite, but anyway, well done for completely missing the point again. I have Blu-rays. I want to be able to play them on my mac. That is all. The resolution is irrelevant to that point. I'll see you in about 7 years when we will hopefully be able to agree that downloads have finally replaced Blu-ray and matched their quality and we'll all have replaced these macs, the ones I'd like Blu-ray as an option for, for newer ones, that maybe won't need it so much then.