If you have to go with a Blu-Ray player, I second the PS3.

However I'm not going either way right now. Soon enough the players will go dual format and then drop in price.

Eventually people won't even remember this format war. A lot of home entertainment systems have some type of computer involved (I have an old PC with MCE on it). Soon there won't be a need for a wall of movies in your house, just an inconspicuously placed computer. High definition movies will be downloaded and stored. Soon enough the technology will be here to allow for a high def movie to be compressed, without quality loss, into a manageable size. The high demand already for online movies is driving a push for higher bandwidth to the home. Give it a year or two and it won't matter what kind of player you have.

I currently use Netflix and their "instant view" feature is great, mostly for TV series. Give it time and you'll be able to get full on 1080p content over the internet.

My $0.02

spiffy