That is the Malaysian scenario and will hamper BD going mainstream here. But BD is not limited to Malaysia only, in the West the cost of BDs and BDPs are very affordable.

I suspect that CBHDs are doing so well in China due to it being cheaper. The govt there can tilt the playing field towards CBHD by offering subsidies to it or impose taxes on BDs, basically some protectionist mechanisms. Anyway, it'll still be interesting to see how it develops.