I think you are missing the most important reason.
3. Consumers do not value streaming like they value physical media such as DVDs. Because of this the rights holders wish to maximise profit and will not discount to satisfy the masses. Instead they will litigate and develop new formats to make streaming less viable (hello blu-ray).
Until rights holder can see a non-cannibalistic and as-profitable distribution network with streaming they'll stick with the gravy train of physical media.
Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
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