I've seen it on huge screens. And I see the difference. I just don't care about the difference, and I think the average consumer would agree. If the film transfer was done well, a standard DVD upscaled on an HDTV provides a very very good picture, and the incremental difference from a Blu Ray DVD just does not make that much of an impression (save perhaps animation to some degree).
And where I have noticed a marked difference, it's been a detriment. Like one blu ray movie I saw playing in the store (don't recall which) that was so clear that the sets looked like sets. It's the equivalent of the HDTV/makeup issue and I'm sure set designers will eventually compensate. But so much of my DVD watching is of older movies, so it'll remain an issue for a while.
I'm no luddite by any stretch. But to me, the changes in delivery paradigms are far more interesting than incremental image quality upgrades.
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'He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me.'
-TJ
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