I own lots of them - all of them have been ripped to my server, compressed, and put into MKV containers. However by doing this I cannot get the "branching" that many BluRay have for alternate endings etc. and any additional content on the disk is pretty much wasted too - sometimes I like that stuff. With DVD I rip to ISO and have full access to that stuff!
Now that this is moving forward, finally, if someone can come up with a way to compress the content but allow access to menus, alternate endings, blah blah, I'll happily re-rip to a format or container that allows for that playback. Yeah, this is a BIG deal for many of us.
Mind you, MKV supports "branching" on it's own, it even supports menus! Now, try finding mature tools that can create MKV with the branching properly or tools to create MKV menus. I've seen ONE tool to create the branching files (years ago and I lost track of it's development) but I've yet to see that format supported in my player of choice - XBMC. I think VLC *might* support it but I'm not sure - I'm told Anime files sometimes use this but I'm not a consumer of that.
If the stars align the XBMC folks will take these changes to the BD library and leverage them. Then maybe the community will create tools to support ripping that will play this back. That would be cool - we'll see. People have been working just to get this support for YEARS so this is a pretty decent feat IMO.