Doogie, here are my 2 cents.
1. Since you posted this in the BD forum, you're going to get more pro-BD answers (the BD vs. HD-DVD recommendations would be different if posted in the HD-DVD forum), so keep that in mind.
2. Picture quality of high def discs (BDs played in a BD player versus HD-DVDs played in an HD-DVD player) is equal, despite some of the rhetoric above. There is no advantage of one format over the other for PQ (for high def discs). That is not quite true for playing SD DVDs (see below).
3. The best upscaling player, for playing SD DVDs, is the Tosh AX2 HD-DVD player. The worst player for playing SD DVDs is the PS3 (if you go this route, I would recommend another DVD player for SD DVDs).
4. HD-DVD has a price advantage in terms of the players, although this could change down the road (but not anytime soon).
5. BD has a studio support advantage in terms of the number of studios with BD-only movies. However, there are movies only available in BD (Sony, Fox, and Disney), movies only available in HD-DVD (Universal), movies available in both high def formats (Warner and Paramount), and many movies available in neither format. The only way to know which movies are better FOR YOU is to look at amazon.com or netflix.com to see which movies that YOU want to see are available in which format. Based on my Netflix queue, it is an absolute wash for me! Also, studio support may change in the future (IMO, studios only supporting one format are leaving money on the table).
6. Bear in mind that more and more players will be coming out that play both formats. There is currently only one (by LG), which most do not recommend, but a Samsung dual-format player has been announced. More will likely come out later this year, so you may want to wait.
7. IMO, both formats are here for many years, despite the rhetoric above, so buy what you like.