What I am getting at is that if I only buy my movies via download, then I am locked into viewing them a certain way. For example, if I were to buy the films via Kaleidescape's download service, I do not know for certain that I would be able to transfer those titles to my iPad. If I buy them via iTunes then I cannot put them on my Kaleidescape. That really is an invisible format war with just as much incompatibility as HD-DVD vs BluRay.
Having the physical disc allows me to pop them into a DVD player in the car or take them to Grandma's house if need be.
I would challenge the notion that you can't have a 'one size fits all' philosophy in a service offering. More on that in a minute......
First, to stay on point, the argument you advanced was that you couldn't take your Kaleidescape system on the road for your kids (and now grandparents) to enjoy so you would need to be able to buy a disk to make up for the mobile experience. My position is that a number of devices exist today that will allow you to forgo the need for a DVD, such as any USB thumb drive, an iPod/ipad/ipodtouch and similar devices in the non-apple universe. Most K owners I suspect have one or more of these devices and new ones are coming on every day. I just saw one on engadget that even had an onscreen aspect ratio button that would allow you to toggle through all the available aspect ratios for your device.....neat idea really. So no you do not need the physical dvd to entertain your kids on the road.
I do not believe it is fair to expect Kaleidescape to provide an export system under the current technology and business model. The whole point of their culture is to keep legally owned movie material in a closed secure ecosystem to assure the original owners that their property would not be released into the public forum under any condition and I believe they have honoured that pledge to date. I applaud them for that accomplishment.
Having said that I believe that time and technology evolution have progressed to the point that a new business model (without reliance on physical DVD's) can exist and bring continuing value to this population of K owners. Once the user mandate no longer contends with the DVD/BD limitations we get some of those things back that Apple owners are starting to take for granted. If you buy a movie from apple you can play it on your iPhone (I just can't get my head around that), IPad, 30" iMac, and through 60" LED or heaven forbid 14' curved screens. So your concern about device portability disappears when you get rid of the DVD/BD. Being able to get movies on or off your K system is as easy as pie. In a sense K could be a better apple than Apple, if you follow my logic.
The business model shift for Kaleidescape isn't trivial or simple but status quo is not an option here, especially in this business. We need, as Kaleidescape owners, to convince the manufacturer to get in front of this change and direct it rather than follow it from behind. Put the revenue back into product development and save on a ton of legal costs that can't possibly make this thing go away.
Change the current business model while it is still possible......
Peter