Sony just announced a new BD player for summer for $599, that will street for less and will upconvert too!
Imho, still 20GB PS3 is more valuable as BD player. as I see humungus potential untapped for ps3 console.
I use an outboard upscaling dvd changer from yamaha for my dvd upconversion that plays pal, divx, is region free and have DCDI processing that helps me a lot to upscale/play back decently crappy indian dvds through HDMI.
So for HD DVD I am down to xbox 360 add on, that has terrific picture through component currently, but sucky sound quality( waiting for firmware upgrade). I did try HD A2 and did not like much sound quality through HDMI/COMPRESSED or UN COMPRESSED either!
PS3 sounds phenomenal!! Imho, bad sound with good picture is half fun.
Ps3 also plays SACD and CDs while sony's $1200 player does not, and also, dont have HDMI 1.3 and no high def audio decoders
as kits said!! BR are way ahead in software movies, minus universal, and disney exclusive!
Their sales/promotions are helping the format a lot.
On hardware there are more players, LG, Sony, Samsung, Sharp, Pioneer etc so, competition will bring better players out soon, and prices down.
Unfortunately I only see MS and Toshiba on the other sides! and Toshiba is depending upon cheapo chinese brands to give them price advantage!