The PS3 is connected using HDMI. The TV is 1080p and the HD cable channels we get all look spectacular. It could also be the movie itself. I still buy Blu-Ray titles when they are ridiculously cheap so I have some others I can try. But unless every movie is spectacular, Blu-Ray is a non-starter.
Probably the two best Blu-Rays I've ever seen are Casino Royale and The Queen (the QE2 biopic with Helen Mirren).
If you haven't seen either of those I highly recommend them. The picture quality is probably 5 times better than DVD.