To me, I feel Warners have made the wrong decision, because HD DVD was capable of working with DVD rather than against it. Neither HD format is ever going to become as popular as DVD is/was at its peak. And as such Blu-ray which is a HD only format is in competition directly with DVD, while HD DVD could at least present a format compatible with other players around the home.
While there were some issues with Combo discs - but I would suggest pricing more than reliability (did you see the msrp for the combo "Smokin' Aces" in the UK - totally insane!). I won't deny that there were reliability issues (I have several combos, but only Children of Men caused problems for me, which was quickly sorted out thanks to Amazon). But if MaxPower can say various Blu-ray issues can/will be sorted out in time, surely the same argument can be applied to HD DVD/DVD combos. Any production faults would quickly be ironed out, and hopefully at the same time, so would the prices. The Twin-format disc offered lots of possibilities too. I'm surprised Disney - which a market with a sizeable "babysitting" demographic, didn't see the advantage of HD DVD and working with DVD rather than against it.
Note: Although I have a love of the combo format, I am not suggesting at all that all DVD releases are released as a combo - that's just silly. But I do think every HD DVD should be released as one (assuming there is no price difference between a combo and non-combo HD DVD).
Being as the HD format[s] are competing with DVD, it seems a bit much to expect everyone to (perhaps ultimately) replace all their current DVD players.
So my question is, what is Blu-ray doing about the "other player" issue? Do they expect people to choose to buy a blu-ray disc which isn't playable in people's bedrooms or cars or portable players. Or are they seeking a solution which will at least make buying a HD copy more paltable for people who may wish to view the film in players other than their main home theatre?
Managed copy isn't really the answer, because although its highly desirable, you will (presumably) need a PC equipped with a BD Rom/DVD writer to make use of it.