I think this is good for the proliferation of HDM. The masses (or maybe the media, who knows?) want one HD disc format and it's going to be blu ray.
Now BD will have Disney (including Buena Vista, Miramax, etc), 20th Century Fox, Sony, Lionsgate, MGM and Warner and HD-DVD only has Univermal and Paramount, which isn't going to last indefinitely like the studios that have agreed to use BD.
This is good because blu ray the winner, people who are holding out don't have to anymore. They can buy a blu ray player, including a PS3 if they desire, with confidence it won't become obsolete soon.
Those of us (like me, I'm format neutral) that have an HD-DVD player/add-on, it's not obsolete because we still have our HD-DVD libraries we can enjoy for the rest of our lives.
Don't see the problem here.