I was reading through the user agreement for the new patch for the Playstation 3 and saw a section about three fourths of the way through that discussed movie rentals and purchases in both standard definition and high definition. After reading through it and finding nothing questionable I turned on the playstation and downloaded the new update. The store now has a video section where you can rent or buy movies and tv shows both current and classic by the season. The prices are no different than going to blockbuster. I am unsure what rights you have if your hard drive crashes or you lose your purchased content. It was not spelled out in the user agreement if you could download again by showing proof of purchase or if it was just your loss.
Regardless, if the content selection continues to grow I don't know if I see a reason to visit Blockbuster anytime soon (I rent maybe once a month). And those who own xbox 360's have been given the ability to download Netflix rentals, there may not be much of a future for walk-in movie rental stores.
Also, if anybody is considering moving up to BluRay, I would urge you to consider a Playstation 3. I bought mine so I could watch my high definition video that I filmed, but after buying it, I realized it was also useful as a media reciever by setting up a media server on my computer (check a box in windows media player) and for watching bluray movies, listening to music through my home theatre via mp3 and wma's, surfing the web on the tv, video conferencing with anybody else who owns one (all of these things are free by the way) and if you are into games, you can also play those on it.