Not exactly true, Ghost. Blue lasers have a shorter wavelength- that's what enables them to read smaller pits. I don't know which format will ultimately win out, but I do think Blu-ray is technically superior to all the red laser formats. They mostly rely on more efficient data compression, ie cramming more data into less space. Blu-ray provides more disc space to begin with. But the winner won't necessarily be the one with the best engineering. The VHS vs Beta war showed us that. The winner will get to market early with a good product, a great selection of movies, and good marketing.
One nice thing about HD-DVD, aside from the lower cost, is that they've already adopted MLP as part of the audio standard. This means music video discs can have full quality Hi Def video alongside a full-res 24/96 soundtrack. Blu-ray technically could also use MLP, but somehow I don't see this happening, since Sony's DSD/SACD is a competitor of MLP. Sony has stated they're still deciding what the audio standards will be for Blu-ray but say it "may include" lossless codecs.