I just rented Ironman at Hollywood video for under $2 (buy one get one free). My upconverted DVD (non Sony Blu-ray) looked great on my non-Sony 1080p LCD. It also sounded great on my Onkyo (non-Sony) home theater system.
Let me do some math here... I could rent this movie at least 12 times and it would still be cheaper than purchasing the BR copy. Plus, I don't need to $300 Blu-Ray player to watch it. The movie fits on one DVD just fine (with extra footage).
So why would I (or anyone) spend $27.99 on BR copy of Ironman? Blu-ray is a hard sell... Maybe people will start adopting when the "good" players get into the $150 range and the movies are $15.