Things have a long way to go before a majority of westerners have access to solid, reliable 10Mbps connections.
Clearly you do not.
My connection is somewhat above the surveyed "average" speeds and stability for the UK, as frequently reported in the media here. One such story puts the average true throughput of a 10-12Mbps DSL connection at around 3.3Mbps: http://www.digitalspy.co.uk/digitaltv/news/a251311/uks-avera... .. As mine is usually around 5-6Mbps (though dropping to 2-3 at peak, sometimes) my connection is, I believe, "reasonably good" by national standards.
Yes, I can. It is an absolute measure. Yours may well be well above the average for the region or even the nation, but it is still not good. Mind, slightly tongue-in-cheek since estimating actual required level of service is a bit tricky. I meant it mostly in the sense of "do not let the telcos tell you that is 'good enough'".
Personally, I would put the "reasonably good" barrier for this day and age at about 20/10Mbps. (I pay about 40€ for a nominal 100Mbps - which, in a quick test right now, gives me 24/13Mbps to/from the UK, over Wi-Fi LAN).
So your comment sounds particularly naive, in this part of the world.
Even if you assume "everyone [and that's 1/3 the country] still on dial-up is such a late-adopter they're not even interested in HD yet", a lot of that broadband is less than 1 Mbps. And many broadband consumers have monthly bandwidth caps.
People with >1Mbps uncapped broadband is probably too small of a market to make purely digital distribution viable.
The latter part of your statement is true. They're not wiring up rural areas. However, I live in a neighborhood that doesn't have a home newer than 30 years and am receiving AT&T U-Verse, 20Mbps down (and consistent).
I don't believe the future is in shiny discs. The near-future probably isn't in exclusive streaming video, but the longer term likely is. We're a few technological break-thrus away, perhaps, but for what my opinion is worth... I believe it'll get there.