It's just storage
The cynic in me says that because Blu-ray is technically superior, HD-DVD will actually "win", assuming there is a clear "winner". It's the best marketed one that "wins", not the best technical solution.
The main thing though is that both formats are somehow seen as an "endpoint" in what can hold movies. However, with the increasing availability of downloadable movies, I'm guessing that ANY media whose sole purpose is to give movie moguls a physical lock on movies is doomed to failure. DRM has so far proved to be an expensive failure for the movie studios, with millions spent on annoying their customers with very little to show for it. The advent of Blu-ray and HD-DVD players with legislated DRM features built in to every player is just another battle in a war that the RIAA/MPAA have hopefully already lost.
Then again, I've always been an idealist in some ways. It could be that the RIAA/MPAA are actually going to win, and that copyright as we know it since 1710 is simply going to vanish. The London Company of Stationers is dead. Long live the Global Company of Stationers. Perpetual copyright is just around the corner, and already exists if you factor in the effect of DRM circumvention legislation. The concept of an artist owning their own copyright is almost laughable today in the world of "work for hire" contracts from the studios. And the idea of a "public domain" is being trounced by ever-longer terms being placed on copyright. Where NOTHING is going to enter the public domain for many more years, at which point the Mickey Mouse crowd will be lobbying for 150 year copyright terms.