According to ICv2's report "Internal Correspondence No.73", this year's DVD & Blu-ray market in US is estimated to be $160 ~ 200 million, which is 40% of that in 2005. ICv2 said it's difficult to make a precise estimation because Walmart hasn't revealed their sales data.
Chart: Anime DVD & Blu-ray Market in US (2005 - 2010) no data in 2008 and 2009
Anime!Anime! speculates that the media sales of anime for "core" fans have dropped much severely because the sales of anime for general public (eg. Pokemon, Dragonball, Studio Ghibli anime) have been relatively unchanged.
Thats basically me. The only animes I torrent are ones that aren't available through netflix/hulu yet. I've stopped trying to watch more than 5+ animes at once so this works for me. Theres quite a bit of anime on netflix lately compared to the last time I checked: Samurai Chaploo, Darker Than Black, Outlaw Star, Code Geass R1, One Piece (I'm on Season 03, just to name the ones in my queue so far.
I usually just rip the dvds, as I have one at a time out plan, and store them on the hard drive and put the dvd back in the mailbox the same day.