sashaman saidIf you are getting a new system, definitely go with BluRay. You'll still be able to use it to watch your DVDs but I think discs are shifting toward BluRay so you'll want it for future purchases as well. Plus, I like having the option to stream video from the net through my BluRay player - great not to have to wait for discs from NetFlix.
We have the ability to stream, too, and do other things linked online, but honestly I haven't bothered with that so far. I think the main advantage might be informational, but I can't see why I'd want the program content, since I like owning a physical disc, that at times I can loan to others, and have forever, and so don't use NetFlix.
With a Blu-Ray player, hundreds of satellite channels, many of them sending HD, and 2 relatively new computers (this one was bought in October with a 28-inch screen), I haven't discovered a need yet that video streaming to the HDTV would meet. But I'm always willing to learn, so long as it doesn't make my head hurt. LOL!
BTW, I'll mention again the value of a separate speaker system, usually called a home entertainment system. To me, the real secret to it is the independently powered subwoofer box, that you can place almost anywhere. It adds a low frequency "presence" to the sound that truly makes a difference.
I've even had a subwoofer for my last 3 Mac computers, and for my previous HDTV, that I gave away to my BF when I moved down here to Florida 4 years ago. I wouldn't consider a computer or TV complete without a subwoofer. Though they can rattle the walls, so with our Sony system I often press a remote "Night Mode" button that cuts the subwoofer way back, a concession to our condo neighbors. But come back out of Night Mode and it sounds like we're sitting in a movie theatre.