The original CE Blu-Ray backers will have absolutely no problem getting the studios to produce titles in BD format.
Most all of the major studios already have several big titles on BD including Disney flicks.
I think I know what you mean about consumers adopting... but I would go out on a limb and say with every passing month more and more people are upgrading their old TV sets for better picture quality. Not everyone is going to make the switch, but a big chunk of consumers will. It won't happen overnight, but it will happen just as it gradually has over the last two years. NPD data doesn't lie.
When I first got my shiny new flat panel, I'm not going to lie. I loved it mainly because it just looked cool... even when it was turned off, but the more and more I watched TV, the more I realized I shouldn't cheat myself with mediocre cable and a regular DVD player so I upgraded. The difference truly is amazing. At least on my set it was.
Regarding the prices -- yea, in the end, the CE companies are sales companies... all sales companies test the price elasticity, but they won't make major changes. The prices for movies are not ruled by the makers of the players - those prices are made by the studios.
HD-DVD players could be bought from anywhere between $99-$299. Most Blu Ray players
started at $299. Toshiba continually dropped the prices, and while Blu Ray prices did drop a *teensy* bit, their entry level pieces still weren't anywhere near the prices of HD-DVD players. Most people still bought Blu Ray players because since the very beginning they had the most support and the better techonolgy.
Just because they don't have a "rival" anymore does not mean they are going to jack up the prices because their prices hardly moved when they did have a rival. The CE companies
want the masses to drink the Blu Kool-Aid.... why would they price it so high that normal people couldn't afford it?