I wholeheartedly agree... why people profess that the lossy compressed video garbage that Apple is releasing from their store is by any means a worthy evolutionary step on from the quality offered by Blu-Ray is beyond me.
Once the infrastructure of the the internet can support 50Mb+ speeds worldwide and we can download content which isn't so compressed, then maybe that will be the end of optical media. Until that day, get your finger out of your ass Apple and add Blu-Ray as a BTO to your product lines!
The reason why people want to suffer with limited quality it because they just don't know any better. It's like it was with MP4 audio when the iPod first came out with iTunes. There where millions of people asking if they should continue to buy CDs or download from the internet.
We all know how that went.
I agree with the Blue Ray supporters, but I would never wait for Apple to wise up on that front. I'd grab a REAL media center PC with BR and be happy.