What you don't understand is corporate politics. Microsoft wants both formats to fail so they can be heroes and make the world move to digital downloads. That is the dirty secret no one is talking about. That is why Microsoft is handing out $100 million dollar checks to studios just embrace the HD DVD and not the leading, and superior Blu Ray. They want confusion in the market until they perfect the digital downloads. Time will tell and you will see the truth.
Personally, I don't see digital downloads becoming a reality any time soon. Even with broadband, standard def titles can take a fairly long time to download. I can't imagine downloading a multi-gig high-def title.