thanks for your inputs bro. 
you might be surprised, as i was, about the quality of the hd downloads. based on screenshots they are better than cable hd and roughly on a par with blu-ray.
don't get me wrong bro. i don't mean to debate this. my personal purpose is to be more vigilant about whether blu-ray is a long-term format as i don't want to be holding hundreds of discs again, where there is a more viable option!
i already jumped into the blu-ray pool, and always wonder how deep i should go...so i eagerly anticipate and will always appreciate any news or reality check.
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I haven't seen the Apple TV quality in action but in my understanding, it is similar in concept to that of Xbox Live HD downloads which I've actually watched in the US, that is, 720p stream which is ready for viewing in a few minutes while the rest of the file is being downloaded.
Unfortunately, HD and movie downloads through Xbox Live are exclusive to the US and even if you buy MS point from the US hoping to purchase the video contents, Xbox Live checks your IP address and automatically restricts your access if it's detected to be originating from outside the US. I guess Apple has the same policy thanks to Hollywood. IMO, this is another stumbling block for downloadable hdm to becoming mainstream within a few years. What would the millions of hd adopters in Asia and Europe do if they are not allowed to purchase/download the richer contents from US sites? Buy the disk from Amazon..or..go to torrent sites.
I've also watched lots of 1080p and 720p hdm torrents and they're really awesome on my 22 inch CRT PC monitor and even more jaw-dropping on my HDCP compliant LCD PC monitor. However, I don't know how they would look on a regular 37 inch or bigger HDTV as compared to originals. And although I haven't tested on a receiver, I expect some degradation in sound quality due to compression.
Personally, I would simply continue my selective disk buying which started in 1999 with DVDs and download the rest if I can. Once the rental shops in Tokyo start carrying BD titles, then that would be another viable option. Nothing beats the convenience of disk but I'm not going to buy one unless I really like the title. So I'm actually rooting for HDM download technology to advance as fast as reasonably possible, but I just can't see it slaying the high def disk in the near future.
