I'm not J6P, but when it comes to HD, I am. I don't have a lot of experience in HD. I do have a PS3 and bought a few Blu-ray movies. I just bought a HD DVD player (HDA2) that I plan on returning.
Here's my verdict: I'm more impressed with the audio than the video on both formats. Yes. the picture looks good and sharp, but when I popped in Gladiator in my PS3, upscaled to 1080p, it looked really good. Not HD, but I didn't go "Yuck" like I did with VHS vs DVD. To me, it was "more than good enough". As someone who is still pretty relatively new to the home theater experience (started in Feb 06), I'm just not all that impressed by the jump. I'll explain my reasons why.
1. Aside from the PS3, all the HD players are slow. If you're trying to impress me, then load it quick and without hickups. 1st impressions count in everything, even in HT. J6P can buy his $199 HD DVD player and get pissed off by the 1min loading time.
2. Deliver the promised specs and a polished product. When I play the discs the HD DVD player came with, I see ads of "Lossless 7.1 audio." Where is it? I have a 7.1 system. Blu-ray doesn't have finalized specs either. Lossless audio cannot be passed at the moment even though HDMI 1.3 receivers have been out for 4 months already. I don't want to be doing firmware updates. Neither does the average Joe.
3. It looks like DVD. Sorry if I'm reaching here, but when I first heard about HD DVD and Blu-ray, I thought they were a mini-dvd type of format that could hold a lot of data. But these discs now are the same size and shape as DVDs. 1st impressions again. If these discs were small or a different shape that differentiated them from your traditional DVDs, that would be a good selling point. I'd say it's pretty accurate that people's perception of a futuristic disc is small (think Demolition Man movie), etc.
To me, it seems like both of these formats are fighting to be the next Laserdisc. They have some advantages over DVDs, but it's more of a small evolution than the massive revolution that we saw with DVDs.
I'd like to see multiple lossless tracks in various languages, a lot of interactive stuff, and a disc that is small. HD DVD looks maxed out with its measly 30gb. Who knows if that 51gb disc will be out. Blu-ray has a nice 50gb disc that can accomodate a lot of stuff, but it's not really a big enough jump that makes me say: "Yup, I can see why Blu-ray's 20gb advantage makes this movie look better." Either way, both are already feeling outdated. They are both 8 bit color formats, when there's already 36bit deep color tvs coming out, and possibly with more resolution in the next few years. I can't shake the feeling that these 2 formats came out a bit too quick.
I want to see a disc that can do this:
1. 8cm disc or a different shape that can hold 100gb+
2. Multiple master audio tracks. With the ability to download custom audio tracks and extras.
3. 36bit Deep color native.
4. 1920x1080p initially with the possibility to encode multiple times its resolution.