Yes blueray is better.
A regular blue ray disc player is pretty useless IMHO.
Like the others said, get good cables, optical for sound etc.
I bought a PS3 and don't play games, just using it
as a multimedia center and blue ray player.
Bought a full HD player as well but never played any full HD discs on it.
At first I really liked the blue ray quality.
I even bought a laptop with blue ray player and HDMI out
so I could use it on the bedroom TV as well.
But the Blue Ray selection is not that good over here, even good downloadable 1080p is
still a bit limited on the net due to large media files and unstable lines.
Now I watch way more normal media than BR.
Before you get one, look around how much Blueray media that are available in your area.