I recently finished upgrading my setup from a five-year-old 32" CRT HDTV to a 70" SXRD.
I upgraded the TV first. I was very disappointed with the performance when I put the first disk in the player. It looked very grainy and splotchy. You could see all the compression artifacts. It was very sad.
I upgraded the DVD player to a very good Oppo DVD player that was advertised as having an extremely good up-converter. I found that this gave much better results, but it didn't really knock my socks off. Impressive, yes. But not anything that made me wet my pants.
After HD-DVD threw in the towel, I finally upgraded my PS2 to a PS3. When I put in the first Blu-Ray movie into the PS3, I finally had my first bout of incontinence. It looked better than I thought possible on a TV screen.
I set up the system so I could flip between my old DVD player and the PS3 Blu-Ray version of the movie 2001. It really amazed me. The Blu-Ray version was so full of detail and so devoid of artifacts. Almost a year later, the TV finally had achieved its potential.
Ever since, I've stopped buying regular DVDs and started looking for sales to replace some of the action/Sci-Fi DVDs with Blu-Rays.
Now, for some background.
When the HD-DVD / Blu-Ray war began, I hated it. I didn't have a very big HDTV, but it looked great with my ancient DVD player. I chalked the battle up to the studios pushing a new technology into a market that just didn't need it. I didn't want to buy a new player and I really didn't want to replace all my movies with yet another standard.
All that changed once I saw how things look on a really big TV screen. Once you get a screen that lets you really see how bad compression can get, you understand why an uncompressed movie makes such a difference.
I still think Blu-ray is too expensive, which causes quite a barrier, but it will eventually come down. I don't think Blu-rays will go the way of Laser Discs, but it's going to take a while for them to take down DVDs...
He has not acquired a fortune; the fortune has acquired him. -- Bion