Is Blu-Ray passe?

Here's a NY Times story via the blog HardOCP. It takes a look at Blu-Ray, which was expected to bloom as the HD format bowed out of the high-def format war last year. The problem is, people don't seem to be snatching up Blu-Ray in the droves Sony imagined. While the price of players has finally become reasonable, there seems to be a real sense that downloadable high def movies are just around the corner. In other words, the new disc-based media may have simply come too late. Meanwhile, there are only just over a thousand titles available on Blu-Ray. Already, one Web-based service offers 1,400 titles as high-def downloads. Could DVDs outlive Blu-Ray simply by being "good enough"?