I'm amazed how quickly they are getting source material to market. I'm guessing BMX is correct, but is there any issue of playing 1080p recorded material on a 1080i/720p set? You'd never think of having to "downconvert" on a $6000 1080i plasma unit.
If they price these Blu-ray units under $500 by mid 2006 (I'm sure they'll start out around a grand), and discs at $19.99 (sd dvd's are being sold at local Blockbusters for $7 - $10ea), the units will fly off the shelves faster than XBOX360. People are so eager to take full advantage of their new HD sets, especially due to lack of HD network programming. It should be a fun year with HD.
I'll be interested to see how quickly Blockbuster and Netflix jumps on the bandwagon. It will be strange to see HD-DVD titles in one isle, and Blu-ray in another.