I agree as well. It's only a matter of time before the medium of DVD is replaced with something better, more efficient and more cost effective.
Not that everything will be going to your "computer" though. Keep in mind, and pay attnetion to products like XTV.com and TV set top boxes like it that are essentially TV over IP.
The people who buy porn DVD's as opposed to watching it on their comps are the people who will gravitate towards the "porn" aspect of TV over IP, and they should be paid attention to.
Here in Vancouver (and elsewhere they service), Telus (the big telephone service provider) is making a big push soon for their TV over IP and there is at least one local porn production company that is on board with them in their pay per view section.


Definitely something to keep our eyes on...

Dave