For me, I will get a PS3 for gaming(if I can find one on launch) but when Warner or any other studio releases a movie I want on both HD-DVD and Blu-Ray I will most certainly pick up the HD-DVD version. Heres why:
Every HD-DVD player HAS to have Network Support, Storage Memory, HD Audio Decoders, ETC. The thing that Surfer Dude and other blue ray supporters seem to forget is that although Blu-ray might catch up to HD-DVD's PQ, they still lose out because nothing seems to be mandatory with blu-ray.
After watching Batman Begins, Fast and the Furious: TD, T3 on HD-DVD and experiencing the "In-Movie Experience" PiP commentaries I am so sold on HD-DVD it is not even funny.
When studios really start taking advantage of the network with menu updates and updatable trailers, there will be no doubt as to which format to buy your movie on even though the PQ is the same. With TrueHD, IME, HD-Audio Decoding and much more interactivity it's a no brainner.
As for PS3 being a cheap blu-ray player, I seriouly doubt the Panasonic and Pioneer will stay making Blu-ray players if everyone is buying PS3's instead. That tells me that the PS3 can't be that good of a player. The PS3 has a network, it has HDMI 1.3, it has more features then Pioneer and the Panasonic with the exception of maybe analog outs. If the PS3 has more features then the stand alone players then either the PQ is not up to par or the stand alone players are not worth $1,500. I happen to work in a field that requires me to attend trade shows and the couple I been to where a PS3 was showing off blu-ray movies I was not impressed.
I for one will be one of those 400.000 that will instantly have a blu-ray player in my home when I buy a PS3. Even with a PS3 my neutral purchases will all be HD-DVD and if Fox's blu-ray disc retail at $40 I will not be buying many of those at all.
When it comes down to it, I think that most people that have both HD-DVD and Blu-Ray players will buy there movies for HD-DVD if they are available on both formats leaving Fox and Sony as the only studios to profit off blu-ray. Once Warner and Paramount see that more people are buying for HD-DVD they will stop supporting blu-ray.
I came to the next generation format with an open mind. I purchased both the Samsung Blu-ray player and the HD-XA1. Samsung went back and my XA1 has been fulling it's promise of next gen DVD nicely.
As for Fox, I don't buy SD-DVD's anymore and my PS3 will be in my gaming room not my HT room so I won't be buying many if not any Blu-Ray movies. I am not boycotting Fox, they just happen to not have any movies on HD-DVD for me to buy.