I'm a video snob and LOVE the high quality HD video on Bluray.
The whole physical media vs streaming issue is a bit of a false dichotomy. There is also the third choice of non-streaming straight up download and watch later.
A movie transfered from Bluray straight to a harddrive with no transcoding (eg: a bit perfect copy) will have the exact same quality as the original disc. There's nothing magical about the plastic it's on. So if we assume that an average Bluray disc is around 50 gigabytes (I believe this is the current max capacity) then we get come up with the following:
A new 3 terabyte hard drive is $209.
3 terabytes / 50 gigabytes = 61.44 movies stored at a time
209 / 61.44 = $3.40 per movie stored.
And that price is only going to drop.
Now this assumes that the cost of bandwidth is negligible. On a modest 10 megabit connection it should take around 12 hours to get a single 50 gig film. Still faster than waiting on the mail.