Sounds like you need kaleidescape...Two reasons I'm for streaming.
1. I tend not to be careful with optical media and half of my DVDs and Blu-Rays are already unplayable.
2. The ability to watch ANYTHING I want (assuming streaming library gets bigger) at a moments notice. It's like having a video store in your house.
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Wasn't aware most people were still capped. I'm on u-verse and before I moved, fios. Before that (2003-2007), I had time Warner cable. Never had a cap but I understand that could be a problem.
Wow, you must have seen some really crappy transfers...iTunes 1080p honestly looks better to me than bluray. It's stunning. I'm glad Apple never gave in and added bluray drives to their products. It's unnecessary and consumers definitely don't want to be burdened by discs anymore.