Blu-ray is the superior format over HD-DVD, although not measured in the same way as Beta vs. VHS.
Sony already has a working prototype Blu-ray disc with 100GB capacity. In fact, they had it more than a year ago. More capacity means greater "headroom" for evolution of the technology over time.
Capacity is everything! That is what took them more than five years after high definition hit the streets to move forward with hi-def movies. Both HD-DVD and Blu-ray had to work out the bugs with "Blue" laser pickup technology. That's why we wound up with two formats to begin with. Two powerful and well-backed associations spent a great deal of resources overcoming specific, technological challenges and didn't want to just give up on their specification.
With 100GB of room, Blu-ray will provide us with more content, improvements in audio to 7.1 and beyond, as well as upgrades we haven't even thought of yet (Yamaha already has an 11.2 receiver - RXZ11).
Imagine, for the first time in movie reproduction history we'll be able to hear a movie soundtrack in lossless, studio-quality audio. With more room on the disc, I can imagine a time when we'll be able to buy a Blu-ray disc movie, that will include an Original Master Recording quality stereo/SACD soundtrack as well!!!! You couldn't do that with an HD-DVD because there wasn't enough room on the disc.
Imagine more audio options when you watch a live performance on Blu-ray... What if you could choose DTS-HD Master Audio 7.1 or 11.2 or 5.1??? What if you had 8 or 10 different audio choices, instead of the standard 2 or 3? With all that capacity on the disc, Blu-ray can give you what HD-DVD could not.
Yes, there will be a lead time on this. But just you wait. Now that Blu-ray is King, there is a feast being prepared in the Kingdom!