Fork in the Road for Blu-ray?

Link to January 5 New York Times article, "Blu-ray’s Fuzzy Future".

Direction #1 (the nay-sayers). “The Blu-ray format is in jeopardy simply because the advent of downloadable HD movies is so close,” said Roger L. Kay, president of Endpoint Technologies Associates. a research and consulting company. “Streaming video from the Internet and other means of direct digital delivery are going to put optical formats out of business entirely over the next few years.”

Direction #2 (the supporters). Blu-ray’s supporters have another view. They say the technology had a breakout year, crowned by the holiday success of “The Dark Knight,” which sold 600,000 Blu-ray copies in one day. They also say that Blu-ray players are selling faster than DVD players did at a comparable time in their emergence.

What's your take?