Moving to solid state doesn't make any sense, mainly for the reason Manedwolf has brought up (ten years? when every other type of media life span is measured in decades or centuries?), but also for the reason of price. Really though, another reason is you can't sell small flash drives in a "sexy" manner without slapping them in a much bigger box. Advertisers don't want people to have to squint to read the title on a small 3"x1" box, so they'll slap the drives in a box the size of a DVD case or (worse) a computer game box.
And really, by then, what's the point? You've got media that doesn't last as long, is more expensive to produce (especially on a per-gig scale compared to BD/HDDVD), and takes up the same amount of physical space. And the plusses are what, exactly?
Media will stay disc based until something we can't even imagine today raises the possible capacity exponentially.
As for VOD, two things are working against it--the ability to archive, and the ability to share. The truth is, you wouldn't have twelve bookcases full of books, movies, and CDs if you didn't really love *owning* things. And yeah, I'm an avid reader, but even I rarely go back to a book more than once every two years, and that's only for my favorites. I'd say 50% of my collection only got read once (by me), and that was it. Another 25-40% only get read twice, and the rest are the only ones it really makes fiscal sense for me to own, as I've already read them multiple times and will keep reading them. So why do I own hundreds of books when I really only get full use out of 10-25%? The rest I could have checked out from the library once or twice.
Well, the answer is, I like people coming over to my house and going through my book collection. I like them picking up a book and us having a conversation about it. And I really like being able to send them home with a small stack so that we can talk more when they've finished reading them too. Instead of a big inviting bookshelf in a nice warm room, you'll have the equivalent of a spreadsheet on a monitor that they'll have to wade through in alphabetical order. And more importantly, you won't have the ability to lend out your VOD license rentals--a friend wants to watch your copy of Band of Brothers? Well, they get to go home and rent the entire thing themselves, giving the studios even more money. Or they can camp out in your house for the next thirteen hours and watch it there.
Either way, leave me out. I have no problem with VOD putting Blockbuster out of business, but I don't want it ever to replace a collection of physical media. (Although, I do throw away my DVD cases and covers now and put all my discs in binders.)