Set up for failure? Bluray was half baked, and even now isn't up to its full specs. People are finding out that Bluray players they bought can't even play the newer movies.
That's a fanboy response, not a real world response.
VHS was technically inferior to Betamax, yet it won.
It isn't about full specs, it isn't about new features or old features - nobody actually gives one darn bit about 'specs'. Consumers, despite claims to the contrary, also don't care nearly as much about cost as they may lead others to believe when asked.
What makes consumers buy is brand recognition. Sell them Bose, and they will buy Bose. Sell them Monster, and they will buy Monster.
Put Panasonic, Samsung, Sharp, Sony, Pioneer, Denon... AND MORE - in front of them, then tell them that the alternative is Toshiba (who?) and that is the most major shot in the face that HD DVD ever had.
Then throw in studio support which was never split down the middle - and Disney is one of the most influential names in video in the world.
HD DVD and Blu-ray are both technically great with both having advantages over the other... People get to wrapped up in the specifications, the little crap (and it is crap) so they miss the big picture. The big picture is, was, and always will be - CE and studio support led by marketing. Toshiba failed to gain this, and the result was incredibly predictable. Blu-ray could have been published on CDs, and it still would win. Simple as that - it has zero to do with the specs. There are plenty of people that believe otherwise... Not exactly sure why, since by their reasoning, HD DVD must have won.