Very cool tech, but I'm going to play wait and see before jumping in to either format. Someone will win out in the end, and the price will probably drop four-fold in that time as well.
In the mean time, I bought a very nice HD-upconverting DVD player just yesterday (Samsung DVD-HD860) which does 480i to 720p / 1080i over HDMI. Not as good as real 1080p but for the difference in price -- $139 vs. $699 for HD-DVD
...all the way up to $1,299! for Blu-Ray
-- I'm happy with my choice for now.