Yeah... as far as upgrading from VHS to DVD, I was WAY behind in the game.
I think it was 2002 before we got a DVD player... I was actually really eager to start watching DVDs, because that DID have a hugely noticeable quality difference. To the point that I had to pester my parents for weeks to buy one.
With Blu-Ray it's not the same. I see Blu-Ray, I see DVD, I'm not blown off my feet. It looks a bit clearer, but not so much that I'm going to go spend $300 a TV and $30 a movie to upgrade anything.
And hey, I still do collect vintage VHS tapes!
One of those reasons is because Disney keeps modifying their films... why would I watch The Lion King on DVD if I have the original VHS? (Or laserdisc for that matter... I don't have an actual laserdisc player but I have recordings made by a friend) Same with movies like Star Wars, etc. And hey, let's not forget all the stuff my dad recorded with his camcorder! We still use a Hi-8 camcorder, for that matter... maybe one of these days I'll get him a MiniDV camera for his birthday.
And the main reason I prefer DVD is, as I said, compatibility. Blu-Rays are great for watching on your HDTV with an attached Blu-Ray player, but most people only have one or two in their whole house. We have three other non-HDTVs that work perfectly with a DVD player and VCR attached. I also have an 8" portable DVD player I take in the car when we travel. (Not to mention the portable DVD player/screen in my mom's minivan).
So the only real use of Blu-Ray is to watch on an HDTV. And since I have far more places to watch standard definition than HD, I'm not investing in Blu-Ray. And it's not as if DVD looks horrible on an HDTV... I've said many times that when done right, it can look great. (The Xbox 360 is doing a great job so far)
When they start making $50 Blu-Ray players, and portable ones you can take in the car, etc. then maybe I'll start buying Blu-Ray movies instead of DVDs.