I just recently started watching BSG. I avoided it for a long time...thinking it would be similar to the cheesy original. I'm glad I finally was convinced to watch it, because it's a truly fantastic show. I watched the entire first season via Netflix, but with Best Buy's deal currently running (all four sets for $120) I've decided to just pick it up. Glad to hear the quality doesn't drop.
I debated waiting for a Blu-Ray release, but figured it would be a lot more costly than what I'm about to pay for the regular DVDs. Plus, the lower resolution doesn't seem to detract too much from the dark and gritty feel to the show. Of course, I have yet to watch it in HD...so I might just not know what I'm missing.