The short acronym is DRM. BleuRay takes DRM to a new level and along with it we get all this firmware and other problems.
You have hit on why Blu-Ray is not doing well. Most folk are not willing to put up with the troubles.
However the PS3 seems to be a little better but then again the cost keeps the acceptance rates low.
I hate Blu-Ray!!
Don't get me wrong, it has fabulous HD video, but why do I have to put up with constant problems playing discs? I just want to sit in my recliner and watch a movie. I don't want to retry playing the disc numerous times. I dislike having to upgrade firmware and wait for the download to play a new DVD release. It's like buying a car with 3 wheels and having the dealer try different wheels to complete the set. Manufacturers are rushing new technology to get the product out without due consideration to the DVD producers. Universal is the worst. Why??