I think the key difference is one time expense vs. monthly payments: the first will win over the second in most cases.It is perception, inertia and the lack of knowlege on how to hook it up properly.
If you could say: spend $5K - HDTV, player, AVR, speakers - and all the movies you have (DVD) or buy later will be in hidef, it would be a much easier sell.
But you have to add that with old DVDs the image will be so-so and to get the best picture you'll have to re-buy all the movies you have for twice the price - that's the deal killer...
Same about HD subscription services - cable, satellite, telecom.
The WOW! factor has a price. And for every person it's different. J6P is not willing to pay much for it...
Diogen.