For me it's all about the better product. In that arena it's clearly Blu-Ray. Are most of the players more expensive? Yes, but the cost will come down soon, just as it did with HD DVD.
But let's look at the real debate. HD DVD capacity is 15GB for a single layer disc, Blu-Ray is 25GB! That's a huge difference. Add to that the fact that Blu-Ray has gone as deep as 4 layers on a single disc. That means that Blu-Ray technology has the ability to go 100GB on a single disc! The best HD DVD can get is 30GB on a dual layer disc.
Now let's look at the bigger picture. The real battleground...the PC (or Mac). Computers will be the biggest factor in this battle. I don't have the numbers to back it up, but I would venture to say that there are more sales of DVD players/burners for the computer market than there are for the home theater market. Just ask yourself, do I own a DVD burner for my computer? Do I own a DVD player for my home theater? The answer is probably yes on both accounts. Now ask yourself how many computers there are in the business world? How many of them have DVD burners. Are you starting to see the bigger picture?
It's all about convergence, people are used to being able to play their DVD's at home and on the road, but just as importantly, they like being able to use DVD's to make their own movies, slide shows, etc on a PC and then using them on their player at home. All of which can be done on DVD. Now let's look at Blu-Ray vs HD DVD on the computer front.
HD DVD players have made their way into PC's, but the Blu-Ray drives for PC's have the ability to burn data onto those 25-50GB discs! That is a tremendous boon for the Blu-Ray camp.
Let's see, do I buy am PC with an HD DVD player or a PC that can burn CD's DVD's and Blu-Ray discs with storage capacity of up to 50GB? It seems like a no-brainer to me. Sure HD DVD drives with burning capabilities are on their way, but let's face it, the PC crowd is a VERY demanding group. The philosophy is always "bigger (or faster) is better" and in this arena, Blu-Ray stomps HD DVD, hands down, no contest, not just because you can get it now and not just because you can buy recordable Blu-Ray discs now, but because you can get another 20GB of storage per disc. Oh, and remember how Blu-Ray has proven that they can go 4 layers deep. Hmmmmm, show me a PC nut who isn't drooling over the prospect of cramming 100GB onto a single disc!
My personal preference aside, I predict no winner in the Blu-Ray/HD DVD battle. In the end it's more like PC vs Mac. So long as companies like LG are willing to push out dual format players and movie studios are willing to crank out discs with both formats of the movie in one package, we will see both formats with one, eventually dominating but neither format will go away.