@ BobVB (Viewing Distance)
Im sorry, but saying that they were blown away @ 7 inches from the screen is just mental (in a nice way, no the knife wielding psychopath way).
For a single guy or gal this might be ok, but Ive got a family and we have to be a certain distance away from the telly so we can all watch it at once.
Your best bet (and it has been mentioned before) is to project it. I have a 10ft display area for my projector and on this you can definitely see the difference over DVD. But then again, not everyone is gonna splash out on a projector and screen just so they can get the benefit of Blu-Ray.
For the families out there, keep yer DVD collections, get an upscaler if you really want, but until you have that projector there I simply wouldnt bother.