We got a nice HDTV back in February, and seeing the pictures for myself I can now understand how people may complain over DVD's looking "fuzzy." But it's likely due to the connections and settings.
When we first hooked everything up, HDMI cable and all, DVD's looked scary. Like how a jpeg looks when it's expanded larger than it's supposed to be, not just fuzzy, but with artifacts. And Blu-rays themselves were so sharp and crisp that the picture actually hurt my eyes!
It wasn't until I tried to watch a traditionally animated feature on Blu-ray that I realized our TV was in need of major adjusting. The line art of the characters were surrounded by a white haze! After some fiddling around, I discovered the main issue was that the factory setting for the sharpness was way too high. Once I adjusted that, the Blu-rays looked amazing (and were pain-free on my eyes!) and the DVD's looked pretty damn good too.

I do notice the quality difference but it's not enough of a distraction to complain profusely.

On the other hand, the increased quality of the Bu-rays are enough incentive for me to want to eventually upgrade all of my favorite films (mostly Disney

).