uhhh WRONG
you think upscaling a regular DVD makes it look just as good as the BD/HD version of the same movie? or how about expecting the DVD to be the same quality as "off the air" 1080i HDTV? THINK AGAIN... it is NO WHERE CLOSE
you won't be able to tell a difference if your TV was crap and/or settings way off
my mere "crappy" 60" sony xbr rear projection HDTV shows a clear difference between upscaling regular DVDs on my Toshiba HD-A35 HD-DVD player (was one of the best cheap upscalers in 2008) and HD-DVDs, and that's at a viewing distance twice the recommended (about 6.5 meters from the TV)!
so long as there are people who care about the full sensory experience of watching a movie, there will be demand for Blurays as the format further improves to larger and larger discs with more and more quality being put to it for quite a few more years
streaming videos are convenient and great, but there isn't enough internet bandwidth in the average household to allow the same quality a bluray can offer at this time, with 3D viewing requiring even MORE bandwidth... eventually we'll get there, and that is when you can declare optical media obsolete, but who knows... maybe by then, it'll be replaced yet again with a completely new format and we'll be back to square one again