When digital downloads start coming with Subtitles in multiple languages, multiple audio channels with different languages, additional features, and the ability to skip around chapters, then it will have a chance to become a truely successful format.
Unfortunately, Blu-Ray offers all of the functionality of DVD, the ability to upscale DVD, better video, better audio, BD-Live features for new players (offering readily available content via network connection). You don't have to replace your collection, as it's instantly improved, and you can continue to build on a new collection.
The move from DVD to Blu-Ray is nothing like the move from VHS to DVD. Backwards compatibility, the increase in adoption of HD sets, and the (inevitable) dropping prices of Blu-Ray players will make it a new standard in due time.
Just because YOU don't think so, and YOU want to compare this to the LAST 'format war'...means nothing.
Folks wanted to compare Blu-Ray to beta max. Failed. Wanted to compare the Wii to the Gamecube. Failed. PS3 to PS2. Failed. PS3 to 3DO. Failed. PSP to Gamegear. Failed.
History teaches us jackshit about the electronics industry.