Blu-Ray isn't going anywhere anytime soon.
Reasons
1) Sales of BR media has increased quarter after quarter and is expected to eclipse DVD sales during 2011 - 2012.
2) You can buy a BR player for $100. Though this development is relatively recent, this is where DVD sales really took off.
3) BR players do everything DVD/CD players do. Thus when purchasing a new or replacement player BR is typically a shoe-in.
4) Media storage demands for increased interaction, increased functionality, HD movies, 3D, etc are growing not shrinking. DVD simply cannot compete here.
5) Streaming bandwidth in the US and Canada is crap. Bandwidth caps are already brutal in Canada and becoming more common in the US. This alone will force physical media.
6) Bandwidth suppliers simply do not want to make the investment required to make reasonable HD bandwidth a reality for the majority or US residents. Again, this alone forces physical media on the consumer.
7) People seem fixated on great video quality. DVD video quality is markedly lower than BR. It should be noted that this is especially prevalent when the source material was filmed in HD and up-conversion was not required. This library is growing monthly.