I am in much the same situation, and have read many of these "should I wait" type of threads. I don't think that the format war is going to be decided very soon, and even if it is who knows the prices that will be charged for some of these players. For my situation, I have decided that I could get a decent upgrade in video (and audio, as I am into hi-rez music) quality for around $250. And for that money, I would be enjoying better sounding music and better looking movies until this thing is hashed out and prices level off a bit.
Cheers.