Tim, I'm not saying that it doesn't cost anything to stream a movie.
Right, you did mention marginal costs being near zero.
And I'm talking about the cost to Netflix; yes, there is a cost to the viewer,
But this part you did not mention. And it's not something that can be overlooked. By shifting that cost burden to the consumer, they can certainly maximize their profits, but that doesn't mean the costs have vanished. And they are far from "near zero".
if it pushes them past their service provider's monthly cap, but that also is near-zero for the majority of viewers.
?? Even ignoring the monthly caps, which will kick in pretty quickly for anyone watching more than one Blu-ray movie a month, high-bandwidth pipes aren't cheap. At least where I'm at. Since I don't need that high a bandwidth for anything else, then HD streams alone would dictate a significant additional monthly cost for me, for the Premium service. And that's ignoring the fact that not everyone (by a long shot) even has those fat pipes as an option, at any price.
Streaming offers a much lower per-viewer cost compared with DVDs and Blu-rays,
This is where we disagree. My position is that if you actually streamed BR-quality content, that the aggregate costs would be higher, not lower. They may however be lowered by reducing the quality of the so-called "Blu-ray like" streaming, if they can get enough folks with poor vision to buy into it. Of course, then you're not really streaming Blu-rays, so the comparison falls apart.
I don't expect movie discs to disappear soon either, but in both cases, they will be the minority choice for people who want to watch a movie.
I don't necessarily disagree with you there. It will depend on how tolerant folks with large, high-quality HD screens are to lower-quality, but convenient, streaming content. A surprising number seem to be willing to put up with highly visible artifacting and numerous other ills, as long as one avoids the "sin" of not filling every square inch of their 16x9 screen.

Low bit-rates rule. And of course, misleading articles like yours (and there will be many) that convince readers that streaming is "just as good" (but cheaper and more convenient), will only serve to accelerate that transition to low-quality acceptance.
But please, don't muddy the waters by referring to this as "streaming Blu-rays". The much-maligned, and "nearly obsolete" polycarbonate discs deliver something which streaming currently does not, and can not (economically). Quality.
- Tim