I haven't got room for a vast DVD collection living in a tiny flat. I prefer digital copies as they are easily accessible from a central source, and I don't have to sit through all the anti piracy bits that ironically the people who bought the DVD have to sit through.
I can't watch a BR on my tablet when lying in bed, and it's easier when friends come round to watch a movie to show them XBMC with covers, IMDB ratings and Synopsis than it is to point them to a shelf with some DVD's on and the inevitable question of "What's it about"
I don't see an issue with TV shows if they are aired in your country. I pay my licence fee and will do what I choose with the TV shows. Bit shady when it's not aired in your country though.
You think Avatar was bad for milking it, Care to glance through how many different versions of LOTR there is?
What we need is a spotify for music
Since getting Spotify, I don't download music. If we can get a good distributed system for TV and Movies then I'm sure a lot of people would convert.