I hate to say it, but I think Blueray has already lost. That's really sad, because blueray is so much better than HD-DVD. I really liked that the Blueray people descided to update the DVD standards and went with an intelligent MPEG4 with a much improved menuing implementation. IMHO, the DVD specifications flubbed when it came to menus and user interaction. Things like only allowing a single-color overlay for menus, subtitles as 2-bit image masks requiring a blank frame between differing frames (making it impossible for subtitles to immedately shift from one line to the next, or moving subtitles for kareoke).
HD-DVD on the other hand just took the same DVD specification and upped the resolution and bitrates. HD-DVD players are going to be basically just overclocked dvd players. The DVD MPEG2 can't spec can't handle down-level players as well either, like MPEG4 can. If your DVD player or TV isn't 1080p (the highest resolution) AND widescreen, HD-DVD has to play a different data stream. Blueray and MPEG4 included the necessary down-sampling in the same data stream. Meaning that HD-DVD disks will have only 1080p and enhanced standard definition (DVD-quality 720i) and possibly 1 other data stream on the disks so that there will be room for at least those 2 common profiles. They might even possibly only include 1080i since there are more HDTVs out there that can only do 1080i and not 1080p.
Sometimes, "If it ain't broken, don't fix it" just isn't good enough. Not when there are obvious better choices. I'm sorry Blue-ray. If you had been faster to market, you might have stood a chance.