I haven't handled a DVD in months.
I have two kids who would lose them, leave cases and discs around the house for us to pick up and put back all the time.
Movies are always there, accessible from the sofa in the TV room.
Quality is good. My ripped DVD collection looks fine to my eyes, iTunes HD purchases look great (not Blu-Ray, but then I don't have to fiddle with discs and players now).
When I want to take a movie on a car or plane trip, I put it on my iphone or ipod for the kid(s).
When I want to watch something on the computer in the office, I do.
I'm happy to sit out this next iteration physical media and wait for it to catch up to me. I did that with CDs and was very happy with the decision.
Overall, it's been wonderful cutting the cord of physical media.