I agree - hardware costs would be astronomical.
However, it only takes one enterprising with a working Blu-ray copy of something like 'Transformers' and the ability to mass produce them - and said person could rake in some cash on that front.
Not that I condone piracy - but there's always someone willing to exploit the situation and if we can't get our movies legitimately then some people would gladly pay their $20 for a pirated copy I think.
Then again, if Paramount didn't want their movies copying they should have stuck with Blu-ray!