My question is, and maybe some of you might know this? Will quicktime after this update use the GPU to decode the H264 stuff or will it still be software based decoding.
Quicktime does not even have the capability to decode High Profile H.264 video right now. Only Base and Main Profiles are supported. Bluray uses High Profile.
Also to anyone that compares video streaming and calling it high quality are completely out of touch with what Bluray has to offer. Bluray offer 1920x1080 24p with H.264 or VC-1 or even MPEG-2 with bitrates as high as 40Mbps. The audio can be as high as 20Mbps. Yes you read that right. I have a concert BD that uses 5.1 channel 24-bit/96kHz PCM for an audio only bitrate of 13.6Mbps. If you guys want to compare this kind of capability with a 5Mbps or 6Mbps HD stream for both audio and video, I pity you guys.
Bluray makes a huge difference when it comes to displaying on a big screen and a good audio environment. Yes, this is not how majority of people watch home A/V, but again - we are talking about high quality here, not lowest common denominator.
My setup is a 1080p projector (Epson 1080UB) with native 24p support as well as 60p, 118" diagonal screen, Harman Kardon AVR 745, Klipsch Reference series speakers, Elemental Designs A3/350 subwoofer, PS3 (for DVDs and Blurays), iMac (for ripped DVDs), Dish ViP722.