I generally no longer purchase DVDs, in favor of HD content. I also don't download HD content, because it's just high res low bitrate stuff. Quite decent but not tops. Blu-ray is the ticket. Physical media will be around for a while, me thinks: http://www.flickr.com/photos/mr_skeleton/tags/bluray/
View the largest image size available, which is actually about 75 percent actual resolution, to see why blu-ray is cool.