I gather it'll take about 18-24 months for the picture to become clearer. And maybe another year beyond that for the loser to throw in the towel and stop making discs.
What will happen is that one of the formats will begin to outsell the other. Slowly at first, but picking up speed. For the moment, my money's still on Blu-Ray, largely due to the PS3 (which, by all accounts, is a far better BD player than the Samsung). As the sales gap widens, the studios will put their support where the money is, releasing all the big titles in the better-selling format, while support for the losing format slowly dwindles. For a while, some studios will continue to support both, but eventually they'll stop releasing titles in the format that just isn't selling.
About a year after that, the losing format will officially declare itself dead, and while the manufacturers will continue to support the existing hardware, and some low-end manufacturers may continue to make them, or multi-format players, the manufacture of high-end players, as well as the discs themselves, will cease.
Then, and only then, a winner will there be.
Until that happens, I'll wait. I'll get a PS3 sometime next year, probably, and buy one, maybe two Blu-Ray movies on it just to enjoy. Or maybe not, if Blockbuster starts renting them.
Then, I'll just wait for a winner. Then I'll go buy a set-top box and start rebuilding my collection. I already have a list of the films I'll be re-buying in HD.