However, I can guarantee that BR players will be mainstream atleast till the end of 2013. Most of the Video Enthusiasts still may not be using Internet and other than some BSNL Broadband plans (500/500C/500+C with night unlimited @2mbps), we really don't have cheap high bandwidth internet available.
If I can get BR Player for 5K that can also play DVD and CDs, why would I even bother about a DVD Player?
Internet may not be the only source to get media. In Chennai at least, there are guys who have a huge load of downloaded media that they will give you for peanuts. In any case, my point was a media player that can also play a Blu-Ray attached either as an internal drive or as an externally attached drive. Just imagine a Dune or a PCH with a Blu-Ray drive available for 10K?
I also feel there is going to be a convergence of computing units, media units, and optical units. Just imagine a laptop with a Blu-Ray drive, 500GB of HDD, 1080P screen for 25K? Or a pad with similar features, and an easily available external Blu-Ray drive, all for 25K? You go to office, do your work, come home, plonk the laptop on a dock that is connected to your AV, and you have a full 1080P AV system with internet, media, Blu-Ray, and software that can play anything. The latest version of PowerDVD 11 plays just about any media you can throw at it, and it is only going to improve.
Of course, as you mentioned, this will be useful for a small percentage of people who have good Net connection. At the same time, with the Net taking over communications and IP addresses becoming 64/128 bytes, you can look at an unique IP address for each human being, and the complete disappearance of something called the telephone.
This has already been predicted by SciFi writers such as Philip K. Dick.
Cheers