How bad can Blu-ray PQ can get before it starts looking like a DVD?

[Uniquely]

Just two days ago I watched a regular DVD (Queen of the Damned) for the first time in over a year. I have to say that IMO the picture quality of that particular film upscaled by my Panny BD60, was pretty on par with many of the average and below average transfers I have seen on blu-ray. This is sitting about 8-9' away from a 56" 1080p screen. I can see why in the opinion of many people; picture quality alone isn't enough reason for them to make the jump yet.

That being said, what DID jump out for me was the difference in audio quality. The DVD audio almost seemed to be of lesser quality than what I get from Dolby broadcasts on my satellite box, and was definately nowhere near the quality of the lossless tracks that I have apparently grown quite used to.