Blu-Ray always tended to be higher priced. I just hope the prices don't stay too high compared to SD-DVD's. They look pretty good to me but yes, I see there is a little room for improvement. Upconverting DVD players do a nice job upgrading those images to an HDTV. For years I always searched out the 16x9 versions of movies rather than buy the 4:3 version. They do look very nice.
I have not bought any HD player yet as I was waiting to see who the big winner would be. I can also wait a little longer for a good featured Blu-Ray Player to go for $100 and the good stuff (1 Blu-Ray disc) for $15.00 for a new title. Until then, I will sit and watch the stores before buying anything.
All new players must be able to play all older DVD formats or it will be alot longer until I switch. Hmm.. if the were the case, I might never switch. (Well, not for a long time).
Blu-Ray players can play DVD's. There were a few 1st gen models that couldn't play CD's.
Some play DVD-A's and SACD's.
You'll be waiting awhile for $100 Blu-Ray players. I don't think you'll see them this year even for Black Friday. I could be wrong. (They might close out the profile 1.0/1.1 players.) Part of why standalone Blu-Ray players are so expensive isn't just do to gouging (It's a major part.) of early adopters. It's because many of them have higher end features like 7.1 channel analog audio outputs that the average mainstream consumer doesn't need. Internal Blu-Ray and HD DVD drives are overpriced--period.
I wanted to sit out the format war, but HD DVD's low cost of entry and my need for a good upconverter sucked me in. I figured Blu would win back then. However, I thought we were looking at a two format world when Paramount switched. D'oh! I psuedo regret buying a lot of catalog movies for $15, etc. I say psuedo because a Blockbuster rental would cost me $4. I bought only one day and date movie at nearly $30. The rest I bought via BOGO's. When I buy Blu, I will go back to renting until they have specials, etc. I'm not rebuying anything on Blu, it would cost more than I originally paid on red.