Make MKV is nice because all it does is rewrap the video (AVC, MPEG-2 or VC-1) and audio (extracted AC3 or DTS 5.1 cores) into an MKV container. Plays right in Plex or XBMC and will passthrough the audio by optical port.
While I agree that online sales is a substantial part of Apple's reasoning, I also think they have a legitimate beef with the licensing terms of Blu-ray, which includes kernel-level code and the ability to modify that code by a Blu-ray disc.
Apple will have to enable audio over DisplayPort for that. Optical doesn't have the bandwidth.
The Studios are pretty much run by a bunch of morons.
Yeah DisplayPort can handle the audio, as can DVI. I don't mind if my Mac can't play TrueHD audio right now but I do mind if the product I'm buying doesn't support it. My Mac Mini could, in theory, support all the audio I'd want via the displayport anyway. Instead I use a PS3 for all my Bluray needs. Besides which, I'm not at a point where I feel comfortable dropping disks in favour of digital only video wise. Audio is fine but if I'm watching a film I sit down and make a thing of it - I don't do that when listening to an album.
I didn't realise Bluray needed kernel level code modifications, that sounds nasty!
The whole HDCP thing really is ridiculous - did they really think the main way for people to pirate their content was by somehow recording an HDMI data stream?? That's like recording a component cable video stream from a DVD, people haven't used methods like that since VHS and audio tapes went the way of the dodo.