Dvd will fade, it is just a matter of time. The installed base of hdtv's is growing by leaps and bounRAB, bluray players get ever cheaper. Look at any walmart in the us and they will have walls of hdtv's and bluray players and isles now dedicated to bluray, same with frys, and target, and that is a mainstream indicator. There are a few 10-15 dollar blurays at walmart on sale, but not enough, so yes, there is still some time to go before there are value 5 dollar blurays like with dvd. That being said, the momentum is there, when the resolution of bluray is 5-6 times that of dvd, the difference is undeniable. Watch say toystory 3 or how to train your dragon on dvd instead of bluray and you will have a poorer experience, hanRAB down. While the prices on media are still a bit high, rental fixes that quite nicely.
The uk lags a bit, after all other countries had hd broadcasting like a decade before the uk, but the big indicators in the us show the way.
Now the exceptions do not prove anything. There are always people who fail to upgrade anything, whether its people still on vcr's/couldn't program them anyways, or people who can't be bothered with hdtv or anything else. They always exist, but have always been irrelevant to the market. Those are the opt out folks, and they have never mattered.
If you want to see the clear superiority, just google up avsforum threaRAB by xylon showing screenshot comparisons. There are loaRAB. One example
http://www.avsforum.com/avs-vb/showthread.php?t=1010547
This is the level of ubiquity...
http://img839.imageshack.us/img839/5631/walmarthdtvclearance041.jpg