The way I see it...
The Total HD disc format is more of an interesting tech thing, I actually don't think it can survive for long and gain too much ground. However it shows the frustration of the movie studios about the current situation quite well.
The format war is still totally undecided. The lack of PS3 supplies is holding BR back too, and if it turns out to be overpriced for the not-so-enthusiast market, it'll deminish its effect even more. HDDVD hasn't picked up yet either, but it's not that far behind if we don't assume that every PS3 sold is going to be used as a BR player in the near future.
Don't forget what happened to DVD+ and DVD-. In the end, every single drive and burner ended up supporting both, it became a mass market comodity, prices went down, and yet we still have both kinds of discs on store shelves.
It is quite likely that BR/HD-DVD can end up like this. If every player will include support for both, then customers will be less worried about choosing the wrong format for their collection, or their player. Studios won't have to release in both formats, and will maybe even benefit from making exclusive deals with one side.
Now, on the other hand, the official reason and most likely a major true reason for PS3's delay and supply problems, and its high price (!) is the included BR drive. If the format war ends up as a tie, then the entire decision and effort to include it in the console will be questionable IMHO.
We all know that Sony has tried to use its leading position in the console market to sort of force down a nextgen media format on customers' throats, and this bit of news seems to suggest that they may very well fail in this. Although I'm still wondering if the dual format players are a result of their poor execution, or was it something inevitable.
Oh, and rest assured, other manufacturers will follow, but for the mass market success, high end players wouldn't really matter anyway.