While I don't see the point of either format, I was secretly hoping that Blu-ray would fail, just because Sony really needs to get it's arse kicked so it steps back and gets its shit in order. Another landslide win for Playstation would be a terrible thing for the games industry. (Don't get me wrong, the original PS was a major turning point in the games industry, and I think it saved the console industry - but Sony became stagnated with it's success)
Seriously, what are the real benefits of these HD formats? DVD offered practical benefits over VHS - compact media, the ability to jump to arbitrary points in playback, no physical degradation / loss of quality over time. What do these HD formats really offer?