Do not forget every Blu-Ray disc author has to pay hefty licensing fees for the DRM that has to be included in every disc. There is a one time fee per author, per release and per each disc. This is why small independent publishers will not have their content available.

Considering the DRM is making both hardware and discs a lot more expensive to the consumer in an attempt to prevent them form making legal copies of the content they supposedly own when they buy a disc. Just say no to DRM and do not buy.

I think the normal chain of events would be to release a standard DVD
then down the road release the Blu-Ray version. That way they sell more
standard DVDs
If there is no Blu-ray version available the Blu-ray people will buy the
standard version. To me Yello has made a smart choice
They are appealing to the larger demographic. Then down the road they can
have a special edition blu-ray package maybe with bonus items.

Sure, but this is pure marketing and sales strategy, and has nothing to do
with BluRay being more expensive to make. So which is it, prohibitive costs
or marketing strategy?