Cytocycle,
I had no dog in this hunt, but you are sounding a sour note. Prices will fall when all companies, including Toshiba, come to market with their own BluRay players and the format becomes a commodity just like SD DVD players are now, e.g. a model is available at every corner drug store for 50 bucks. If Sony won the right to drive the schedule for this to happen, then give them their props. The reason why two channel audio is somewhat immune to this silliness is because, in the big picture really, the stakes are so low.
Some companies will execute lower cost versions better than others (my bets are on OPPO), and high end rigs that actually work and do everything but brush your teeth will hit the market even sooner. In any case I can see all the HT buffs agonizing over whether we should use the digital converters in our BluRay player, or in our Processors. "I think the BD's HQV Reon-VX has slightly better reds, but the 7.1 sound stage and attack is a little more dynamic using the processor's DTS-HD® Master Audio compared with the BD's THX Ultra2, don't you?" Wish everyone luck threading that needle.
PS - I went to Onkyo's website yesterday and noted they are touting a $899 HD DVD player as the bees knees. Ouch!