I saw a reader poll on a tech website the other day: HD DVD vs. Blu-Ray, which one will win over consumers and why? My answer is... hopefully neither.
I know it's great to have the newest cutting edge technology, but we as consumers have the power to shape the direction the industry goes in, albeit only to a small extent, by not buying either Blu-Ray or HD DVD. If sales lag, it WILL force a compromise, or even the quicker emergence of a newer technology.
Personally, I'm happy with my upconverting DVD player for now. Things change too quickly to choose sides in an ongoing technology war unless you have money to burn. 1080p won't be embraced by broadcasters for a myriad of reasons, and when and if they do embrace it, it will be in an mpeg-4 format or something new that has yet to be decided, rendering the current crop of 1080p TV's and HD DVD players obsolete. You can read more about the reasons why in this article on Wikipedia and also on berryjooks.com in the article "Everything you need to know about HDTV".