The problem with HD DVD is, I don't think that half or more of the people buying an HD DVD player even know that HD DVDs are not the same as SD....they think upscaled SD DVD is the same thing. "What the public doesn't know is what makes them the public..."
Thus far, more of the BD titles I have seen look better than the HD DVD titles I have seen. At this point, The Matrix is probably the best looking HD DVD I have seen, though I haven't broken open Bourne Ultimatum yet.
You haven't seen
Hot Fuzz,
Transformers or
Eastern Promises?
Yeah, the cautious folks are buying HD-DVD players and renting the discs. (Too bad Blockbuster was too stupid to capitalize on this as usual.

)
I thought Blu-ray was sure to win back in spring of 2007. However, i saw HD-DVD lower its prices to reasonable early adopter levels and saw that profile mess unfolding. I then heard prediction after prediction about HD-DVD is on its death bed. Then, Paramount switched and people shut-up briefly. Both formats will coexist well into 2008 barring a major studio shift.
Honestly, even if Blu-Ray wins, it will be the next laserdisc. For the average person with a smaller than 50" HDTV, upconverted SD DVD is good enough. (However, the differences are noticeable on a 32" screen.) Blu-Ray has significantly larger authoring and replication than HD-DVD and SD DVD. Independent (pr0n, high art, audio-only music, sports, non major production houses) studio support is almost non-existent on Blu-Ray.
For the price of a combo player one could buy a Universal (DVD, SACD, DVD-A) player, a Blu-Ray player and a HD-DVD player. The combo players are not Universal players. It boggles my mind that they didn't add SACD and DVD-A playback.