Good point, but I often wonder if the REAL HD format war will be fought in the blank media arena.
We've seen what the success of downloadable music meant for CD sales, as broadband penetration grows I honestly think the same thing will happen for flicks. Then, we can burn these movies to BD/HD-DVD. DRM'ed to death, but there's no technical reason this couldn't happen.
The HUGE question mark is broadband, though. I haven't been in the market for awhile so I haven't seen the latest adoption stats, so I'm not sure if it has levelled off. You can manage a few megs worth of songs on dialup, but those 10+ gigabyte HD movies are going to be a BITCH ("Hey Ethyl, I kicked off 'Flags of our Fathers' on Monday, it should be ready by Saturday movie night!").