The picture quality definitely is much better, and yes I could get a Blu-ray player for around 250 bucks or so...but I'm not going to get the cheapest Blu-ray player on the market just for the sake of having a Blu-ray player.
Like I said, the picture quality is better...but it's nowhere near a night/day difference in my eyes. It's probably a case of me just not valuing picture quality as much as other people...but I don't watch movies as much as other people either for that matter. I don't really feel a need to be able to see individual pores on someones arms...or see someones nose hair clear as day...lol
The biggest selling point on Blu-ray for me would be the sound modes...but even that isn't really much of a selling point for me currently. I'll get a blu-ray player when I can get a current 500 dollar model for around 200 dollars a couple years from now.
A new TV
might be in the cards for me this year...much later this year anyway, but even at that I'm not to worried about it. It's not even as much of an issue of picture quality as it is connectivity and real estate issues. My current TV doesn't even have RCA inputs, only an F-pin coax input, which complicates things. I have to run my DVD player through my VCR currently...which is a PITA.
The TV I've got in mind is
this Panasonic Plasma set. Notice that it's one of the cheapest Plasma sets on the market, if that says anything about how much I value picture quality...lol...If I can see the screen...it's a good picture IMO.:p
Surround sound gives movies much more of a realism factor than picture quality IMO.