I read this as “you should hire a CE to install an expensive server system; don’t run out and buy an affordable optical media player.” But that’s just me.

This is really bad, not only do you make us click through 10 “slides” to boost your page count, but the article is miss titled. It should be “10 reasons why downloadable HD is reality.”

As CE pros, I’d think you could see the difference between a 7GB Xbox download and a HD DVD or Blu-ray disc.

Face it, if you demand the best PQ/AQ, then HD DVD/Blu-ray is the only answer.

I believe the point of the article is that a HD disc may not be the impending form of next-generation media.

If you use the music industry as an example clearly the model that Apple has introduced with its iTunes music store is growing at a much faster rate than physical media CD sales.

Many analysts have predicted that consumers could skip an optical HD disc format alltogether in favor of a download model that’s backed by a fiber and broadband backbone.

Do HD downloads deliver the same quality as HD-DVD or BD? What audio quality can I expect from HD Downloads? I’m all for the convenience of digital content - I’ve been the owner of numerous HTPC’s and streaming devices over the years. Sadly though, the digital realm seems to require a compromise in quality - look at the popularity of MP3 vs. SACD and DVD-A. I’d prefer to stick with physical media and the inconvenience of creating my own digital library rather than sacrifice quality!

That’s the point, it’s not necessarily about the overall quality of the download. Look at your example---MP3 vs. SACD and DVD-A---consumer preference overwhelmingly favors the model created by Apple and its lesser quality AAC files.
It’s about the convenience and choice of content. If Americans continue to chose infrastructure like fiber and broadband, the bandwidth will be there to support HD downloads, especially when considering Jason Unger’s (author of the blog) point that HDD is cheap.

6 MBps @ 720p vs 38MBps @ 1080p with uncompressed audio.

Until I, or my clients, get a T-10 line plugged directly into the house, downloading at the highest possible quality is not practical. 

Therefore, for convenience purposes (like portable media players) low bit rate downloads are a viable option, and the iPod proved that.  However, if you sell a client a Runco or Anthem product, letting them watch a movie in 720p when they can be watching 1080p with uncompressed audio is doing a disservice to the client. 

Custom dealers/installers need to be able to provide solutions for both downloaded and optical disk media, at least for the next 5 years, before broadband speeds catch up the the file sizes. 

You should not deprave your clients of the best possible entertainment experience they can afford.