Sorry, you're just plain wrong on this. There are a ton of films, often discussed and referenced, making festivals and the like, even with famous stars or known directors, that have just hit finally DVD in the last year or two. There are way more that haven't. Hell, Ozu's inspiration for Tokyo Story (often sited as top ten of all time), the well know Leo McCarey film Make Way for Tomorrow, will finally appear on DVD next month. As the article said there are whole periods missing. See how many commonly sited silent films you can get for instance (most people probably think there were only slapsticks made). I don't know how you can dismiss this as a rant unless you argue keeping a vid off the shelve long enough makes the audience forget, thus no demand.
You can say it's simple economics , though that doesn't deny the displacement of the previous format. Of course I have to bring up LP (even low quality recordings) collectors and the affect of CDs introduction. That title loss is a much bigger deal than audio quality sacrificed in my book.
I think image quality (including deterioration) is certainly a part of it, but that isn't they whole displacement picture, and it is addressed in the article, no? He's still optimistic about Blu-ray, just nervous about the marketplace effect on title availability.