It will, it will.
When the players are cheap enough, everybody will buy it instead of a new DVD player. and when the discs are as cheap as the DVDs, why not buying the one with the higher resolution?
And when TV starts to air in HD quality in maybe 2 or 3 years, the only way to record it properly will be a BR recorder. And when people compare the DVD resolution with the BR resolution on their big TV screens, they will have it.
But of course the prices have to go down first, otherwise too much people are satisfied with what they have.
Don't worry, BR is compatible with DVD, it's only a matter of time.