We were still renting VHS tapes until May 07 I think it was when we dumped out of them and we still get asked for them today!
Blu-ray is successful because "consumers" who spend thousands and thousands on their big flat screen TVs want them to look as good as possible, right now, that is Blu-ray. SkyHDi is "ok" at 1080i, but still no hi-def audio and no 1080p24, so its good, but still not a patch on Blu-ray. We have customers that simply won't watch anything less than blu-ray (ofcourse, we have customers that complain about the black bars on DVD too, there are extremes on both ends).
In saying that, blu-ray rental is approx 15% or so of our total movie rentals, but still under 10% of total turnover so still not significant and it still requires a greater investment percentage to grow than DVD does (IE 20 - 25% of DVD turnover is required to maintain or grow, whereas 40% or so of Blu-ray is required).
No content provider will ignore the maths however, hundreds of millions of DVD players, 10s of millions of blu-ray players. They will not abandon that installed user base.
As I said, things will evolve, but not in this country in the immediate or foreseeable future