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I know it won't completely do away with it (you can still find cassettes and records too), but I still see such small DVD ailes at stores. DVD is an expensive luxury for most people. They can't see spending $20 on a movie just to get outtakes and a crisp picture. Of my peers, I'm one of the few that has taken the DVD plunge, leaving my VCR for any movies I may rent.
As DVD catches on, it's inevitable that it'll one day dominate. But what about the next format that replaces it? I would hate to just have a DVD collection started and then have to go to SUPERDVD or whatever. Maybe if the new format will read DVDs too, that'd be great.