Even though everyone likes Blu-Ray it could go the same way as BETA-Max video did back in the days.
It is allways the consumers that in the end controls what format will win (or be dominant).
For me it feels like
HD-DVD is a more natural way of evolution, since DVD has been around so long now. HD-DVD is just a improvment. I don't know if the HD-DVD standard allows for 1080p but it's nice anyway.
The storage space is boosted, burner prices will not be that high, media will probably be cheaper too.
And production of media, recorders, players will be cheap to since the production lines only needs minor modification and it will be 100% backward compatible.
The question I am wondering, is if the standard will be modifyed to allow contenc on the HD-DVDs to be in 1080p format. Even the early players can't output it. This would be nice.
Ah well we will have to wait and see, for now DVD is still the format that everyone has. Before you complain, I found the comments on the above URL to be interesting. I am not for HD-DVD or Blu-Ray, and most "normal" people don't care, they just want the media and be able to play it.