Just picked up a BD player for my parents as a Christmas gift. Nice Samsung unit at Best Buy for $150. It will replace their 10+ year old Toshiba unit (one of the first units that boasted a component video output) that will move to my mom's office. They will probably mainly watch DVDs on it still, but should look better than the old Toshiba unit.

I think that is what will happen for a lot of consumers...the BD players will be so cheap, they'll just replace their old DVD players with a BD player that makes their DVDs look better anyway.