I just going to brain dump a response to Baily X's master thesis on the future in porn world. It may not make sense.
Mainstream will never accept porn as being legit/mainstream. Doing a few documentries, or having a couple(out of hundreds/thousands) do a few specials doesn't count as acceptance. Once you take dick on film, you're branded for life, sorry, I didn't make the rules, I just state them. Jenna is not going to get a potentially Oscar leading role anytime soon... or ever.
As far as VOD/videos in store are concerned, I can see the stores going away completely. Because legislation gets passed doesn't mean the courts will sign off, they can shoot down anti-porn legislation if they feel it is too broad(done that already) or somehow violates the Constitution. Many nice things about doing business over the internet. One is the costs(infrastructure type) are reduced. Also you don't have to pay off the mob to not make illegal copies of your movie and sell it bootleg. You also don't have people making copies and putting them on the internet(although that point is debateable with mailorder DVDs). So I could see video stores going away... of course they said that about "brick and morter" stores during the late 1990's as well, so who knows.
The HD thing is way overrated, the last thing I need to see in HD is some porn chic's zits on her ass. Not a good idea at all.
P.S. Good thread topic, if I cared more I would give you a bunch of stars or something.