Even Blu-ray Disc Association acknowledges it'll probably be Christmas 2012 before Blu-ray players outsell DVD - let alone before they replace them. Mind you, the industry seriously underestimated how fast flatscreens would take over....
What is almost dead in the water, however, is the high-end DVD player - well, new releases, anyhow. DVD players are retreating to the @sub-£100 space, and that's when the supermarkets/online/electrical multiple stores take over and specialists such as AV Land can't compete. Totally understand their decision, therefore.