I just don't see any way for Blu-Ray to lose this, they have too much on their side, it's almost as lopsided as VHS vs Beta was. When Sony, Phillips, and Panasonic are on the same side alone makes it nearly unbeatable. Why they seem to be slow on cutting prices to equal HD, I don't know, but the PS3 more than evens it out.
I really never understood the HD side of the "argument" in this "war", a higher tech "jump" in technology and in storage size is a no brainer. Once the prices of players crack, they will become reasonably priced pretty quickly. This war is as stupid as DIVX was for Circuit City.