Another MAJOR issue that everyone seems to forget is that these new Blue-ray and HD DVD formats >require< HDMI for HD quality. If you do not have HDMI then it automatically down-shifts quality to 540p.
Estimates have it that over 50% of the HD TVs in homes do NOT have HDMI. Worse, those that don't have HDMI are probably the same "early adopter" group that historically these vendors have needed to be "experts" that help move the standard foward--but in this case 50% of their early adopters are being left in the cold due to draconian copy protection schemes.
http://www.videobusiness.com/article/CA6300812.html
So, take into account:
1 - Higher prices for movies
2 - HDTV required
3 - HDMI required
4 - Very High prices for the players
Regardng the draconian copy protection, there are issues that many don't know of... For example, your hardware player could be black-listed on future DVDs if a crack is made against your model. Suddenly your $900 player doesn't work on future discs.