I doubt that blu-rays will be penetrated enough in homes enough in 3-4 years to get rid of DVD - unless blu-ray players are going to be $30-50 for the cheap ones that have all the blu-ray specification features and not just the cheapest ones to implement.
I certainly see nothing wrong with DVDs and upconversion setups as upconverting dvd players are now cheap and dvds can be cheap if you wait on those releases that hit the market initially more expensive than your average dvd price.
I agree. I'd really like a blu-ray player, but until they're under $100, I'm happy enough with my upconverting dvd player.