Remember also --- that this is *not* a new "standard". Microsoft is pushing it's WMA technology at the moment, how successful this will be is yet to be seen.
The 1080p movies that they are sponsoring are really only designed to be played on computers, of course those of us who have a computer as a source player with display devices capable of 1080p are looking forward to seeing what this new format can do...
However the medium is still DVD, with the same capacity. In order to fit on a DVD a 1080p movie where a 480p movies was designed to fit means that you need more compression to get the 1080 on there, of course different compression techniques are being used by microsoft - a variation on MPEG4 as opposed to the MPEG2 used currently. But still they will need a lot of compression to fit a 1080p movie into 9GB... this may degrade the image to the point where it does not have much of an advantage over normal DVD's. Though of course these disks have not been seen publically yet... they could be amazing, they could be okay, they could be poor. Only time will tell.
However I am upgrading my HTPC to be able to playback these files, you need alot of computing power to decode and playback the 1080p files (there are test file available currently).
I do not think this will be the next big thing, while MS has the resources to push this hard if they decide to, I still think the next generation of DVD devices with much higher capacity will yeild the HD prerecorder content people in the high end are looking for. I believe it will be a while before DVD is replaced though - DVD is still reletively "new", and higher resolution product will take up a niche market like Laser Disk once did - general consumers will not be running out in droves to replace thier DVD hardware and movies until HDTV is the norm and not the exception.
Sony have the blu-ray medium ready for roll out now, and other consortiums are right behind them with their products. It's going to be an interesting few years video-wise coming up... I'm not going to jump on the bandwaggon for a while. I remember getting burnt by picking the best technology in the tape wars, then watching the Beta format die for consumer use.
Personally - I think that 1080i will be the new standard eventually, but not yet and not for a while - so your HDTV investment will be good for a while yet
- Rick