And the people who buy gaming consoles tend to buy a $40 game, and play it for months - not watch it once, and put it in a collection.
Most console games don't get discounted to $40 levels until after they've been on store shelves for quite some time. A new release like Killzone 2 usually commands a $55-$60 price.
I won't speak for everyone, but if I'm only going to watch a movie once I'll simply rent it. I'll only buy a BD movie if it's something I know I'll watch numerous times.
BD rentals often do cost significantly more than DVD rentals. I pay $5.99 to rent a BD movie for 7 days at Hastings. If I return the movie in 24 hours I get a $2 credit on my account. Hollywood Video charges $5.50 for 5 day BD movie rentals.
Compare those BD rental prices to what it costs to rent movies in HD on PPV. It's $5.99 or more for a mere 24 hour rental. Dish Network's 1080p VOD service charges $6.99. Apple provides 24 hour rentals of 720p HD movies with DD 5.1 audio for $6.99. And the video quality of those rentals really stinks bad. It's quite laughable.