As the owner of a working Betamax AND a working Laserdisc player ... I've been around long enough to see formats come and go, and I'm here to tell you: Blu-Ray is nice, but it does NOT have a long-term future.
Now, "long term" means different things to different people. Floppies only just completely died out quite recently. Sony, it will surprise most of you to learn, finally stopped making the last consumer Beta player in 2002. You can still find working 8-track players and tapes at most thrift stores. So formats hang around for a while in terms of support. So when I say long-term I'm referring to +20 years.
The problem with Blu-Ray, as I see it, is threefold:
1. As Steve correctly said, the licensing body is "a bag of hurt." The control over the format is too tight and too greedy.
2. For *mainstream* consumers, streaming will eventually become more convenient/easier and cheaper. Collectors will obviously feel quite differently, but most normal people don't have that kind of relationship to films -- they see them as simple entertainment. Most mainstream families I encounter have very few non-kids movies in their permanent collection.
3. There is a VERY high chance that a future format (among the many currently in development) will prove to have great storage capacity, support more formats and use cheaper media.
To use current existing technology as an example: if you could use an iTunes-like store to buy MKV 1080pHD/7.1sound movie files for let's say $5 (or less), which could be stored by the hundreds on a cheap multi-GB drive (and backed up easily) and stream wirelessly to your HDTV via an AppleTV-like device, I think most non-obsessive film fans would go for that in far greater numbers than we've seen embrace and invest in Blu-Ray.
Thus, it seems to me that BR has a high chance of being superseded by something more efficient, larger capacity, more convenient and cheaper. And that's before you even bring in the very real possibility of better-than-1080p HD (already the norm in Japan) and any possible breakthroughs in home 3D ...