Wow.
Anyway, you don't need to spend an arm and a leg on a home theater. Even with a Standard 5.1 HD-DTS MA receiver with HDMI switching for devices, ($249) 5.1 Speaker system ($499) a blu-ray player ($60-90) and a decent size LED. 60-70" LED 120Hz is fine unless you want to go 3D. $1199-$1499 depending on size - $2,037-$2,300 isn't breaking the bank or making sure one of a_skeleton_03's kids doesn't get to take their course on how to open an umbrella at the local community college.
One stigma that seems to revolve around the phrase "Home Theater" is everyone thinks they need to buy this elaborate set up. If that's a hobby and you have the means, sure. Wet bar, popcorn machine, leveled seating, etc. But a Home Theater can easily mean it is set up in your living room with a couch.
Either way, the difference between Blu-Ray and Streamed movies with regards to sound quality and experience and the debate between that, still stands. 720p/30 streamed from Netflix or upscaled to 1080p on the fly through the display looks noticably worse than 1080p/24 Blu Ray. Lossless sound is a no brainer. If you have not heard it, then you shouldn't really have an opinion on it because it makes a world of difference.
This should get back on track to talking about the consoles so I will stop my side of the debate here. But Blu-Ray isn't going anywhere, and nor should anyone here want it too unless you don't mind paying more for inferior product/service on the sake of you save yourself a trip to a store 5 minutes away.