This isn’t such a bad thing at the moment. A great majority of HD displays are 720p and I suspect it’ll remain that way for a few more years. I can’t tell the difference between the two formats on my 720p display.
A lot of audiophiles scoff at MP3 files, too, but it’s impossible to dismiss the iPod. The fact is that the vast majority of people can’t tell the difference and other factors, such as cost and convenience are more important.
The existing HD disc formats are simply too expensive to make mass market.