The Register weighs in on the matter as well.
...and offhand, I think it will all be decided one way or another well before any sizable consumer-base will be impacted. If it's left "to the market to decide" it will take longer, though, that's for sure...
But how many people jumped on DVD the instant it came out? It over 18 months to build up just one million sales in the U.S. (and we were distinctly ahead of the curve in other regions), and that was feeding to everyone who owned a TV. While I expect the adoption of new disk formats would be easier now than when they were newer, it will be slowed notably because it caters to a much smaller HDTV-owning audience.
Talks may be slow and hesitant now, but that's because both parties know they have a gameplan that
could favor them more than the other and force the other side to capitulate--and both sides have invested way too much money to not test that gameplan first.
But we still have years before it makes any real impact--and in the meanwhile the early adopters are likely to be the ones who pursue any bit of high-tech devices anyway. They're willing to pay more for devices, buy media they may well not be able to play anywhere else, etc. We don't precisely pity SACD and DVD-Audio owners (and the like), though their formats are not widely embraced, and may well dead-end before they ever become mainstream. They have the money, want the added quality, and are content to deal with limited offerings. People who pick up HD-DVD or Blu-Ray before the formats unify will pretty much be the same way. (And later on, almost invariably, they'll be able to spend a bit extra on a device that supports whatever formats they need.)
The main people who'll get lucky are those who get it incidentally--with the PS3, Revolution if it looks that way, a set-top or PC drive grabbed primarily for recording purposes, etc--and find they don't have to get another device right away if they want to watch movies. That they could get what they want and wait for hardware costs to go down and options to go up before picking up a better player just to gain the capacity to play the dists at all.
For the next two years, however, those who specifically look to pick up HD-DVD and BR almost invariably have enough disposable income to burn, the desire to stay on the tech forefront, and will still
be there (and gain the "showing off" aspects that go along with it
) even if things don't ultimately steer in their direction. They just might have to buy more hardware sooner than they though.
(Though of course that type usually does that pretty quick ANYway...)