Why would anyone buy a movie, just download it already.
What Jiggah said and in some ways
downloads (legal ones that is) are worse: sure I might be able to visit a friend and watch a video I downloaded but that is only because my friends either know me or have the same (or better) interests/abilities as me when it comes to this sort of thing.
When the general consumer (he who pays the bills and seems to not as much be the most vocal but certainly the most persuasive)
downloads a $5 TV show with lowish res and to use a phrase not my own DRMed up teh ass tries that you will quickly end up with that not happening. Couple this with the affinity for hard goods and I imagine the "digital revolution" is a bit of a way off. I seriously doubt anyone can tell me that film nights or lending is not something that has been engaged in more than once as well.
I do hope that downloading at least forces regions to disappear sharpish, if I may cite an example: CSI Miami recently started series 5 on TV over here: 11 months after the US show started: precisely zero work should be needed for that (a real time pulldown is not above the abilities of a broadcaster and for the most part English is English, a dub might take some time but subs should even be possible before airing).
"illegal"
downloads: some of these are still not brilliant, sure I might be able to find and quickly obtain a nice 1.2gig (or whatever the quant is set to) "HD" H264 MKV file but lots (check torrent sites) are stuck with 350/700meg AVI (or worse) files, (up)scaled badly, chopped up aspect ratio (I do not want to think how many TV captures have done that), nasty looking (lets face it even with some post processing a lot of stuff looks crap on a monitor)
Quite why I am ranting I have no idea, I have stuff to watch.