Not sure where people are seeing $10 for rentals (except for pre-releases, which is fair).
I am thinking of switching from ripping to purchasing on iTunes now that the cloud is here and found this thread interesting. I definitely assume iTunes is more expensive (and I think over time it should come down), but I am willing to pay an early premium.
Out of curiosity I did a random comparison of the featured movies on iTunes vs Amazon (which I often find to have the lowest prices, though I know there are probably many better places to get things cheaper). Below is a list of the purchase price at each for comparison. This isn't meant to be scientific or perfect in anyway, just thought it was interesting.
(everything is HD/Blu Ray unless specified, didn't distinguish 720p/1080p, n/a-not available for purchase)
New/recent releases:
Descendants n/a - $20
My Week With Marilyn - $20 - $20
The Three Musketeers - $20 - $20
Happy Feet 2 n/a - $20
Jack and Jill - $18 - $20
Footloose - $20 - $22
Tinker, Tailor, Soldier, Spy - $20 - $20
Young Adult - $20 - $20
Like Crazy - $20 - $26.50
Melancholia - $20 - $18.50
Hugo - $20 - $25
Puss in Boots - $20 - $27.50
Tower Heist - $20 - $25
Immortals - $20 - $23
The Skin I Live In - $18 - $20
Senna - $20 - $15.50 (DVD only)
Riseup - $13 n/a
Johnny English Reborn - $20 - $15
In the Land of Blood and Honey - $18 - $25
J. Edgar n/a - $20
TinTin - $20 - $22
Mission: Impossible Ghost Protocol (Pre order) - $20 - $22
Game of Thrones Season 1 (Pre order) - $39 - $44 (i know this it not typical)
Observations: Looks like iTunes actually fares pretty well on new releases. I thought I would be able to do better on newer releases, but in almost all cases they were either the same or iTunes is cheaper. iTunes seems to cap the price at $20.
Amazon specials (thought it would be interesting to see how they compare for some of the movies amazon has on special):
Harry Potter (8 movie series) $85 (sold individually-SD only) - $80
Gone With the Wind rental only - $13
Sherlock Holmes rental only - $13
Fringe Season 3 - $50 - $30
Sucker Punch - $15 (SD) - $14
2001: A Space Odyssey rental only - $10
Lord of the Rings: The Fellowship of the Ring ($20 for SD trilogy only) - $9.50
Lord of the Rings: The Return of the King ($20 for SD trilogy only) - $9
The Hangover rental only - $12
The Big Bang Theory: 4th Season - $30 - $30
Observations: This is very interesting, looks like most of the movies on special at Amazon are not available for purchase in iTunes. I also checked a lot of other movies but didn't bother listing them, and in every case they were not available for purchase in iTunes (maybe there is some correlation between movies being blocked in iTunes and Amazon putting them on special). I have to assume this is licensing related, which is really ridiculous, why would they let you buy the disc but not the digital version. Also have to assume that will eventually get resolved and we will be able to buy these movies (there are plenty of other older movies you can buy on iTunes). And given iTunes has specials too I will hope they might offer some over time.
Looks like if you want newer movies there is no harm in going with iTunes. For older movies the selection is obviously much more limited and you will miss out on specials, hopefully that will improve with time. The other big difference is extras, which I don't care about but I know many people do. Again hopefully that too gets resolved eventually. Overall though it was not as bad as I expected for iTunes, gives me some hope.