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The problem that BD faces is that the best files they can possibly encode on a BD-ROM would be VC-1 1080p/60 (which they are pointedly not using). This is exactly what HD-DVD is using *now*.
So barring hardware differences due to the players, the disks themselves are incapable of delivering a better picture than HD-DVD disks.
Kinda hard to justify a 100% price premium when the ideal image quality for both specs is identical. If BD is going to win, it has to win on peripheral issues, like price, user-friendliness, etc. All things at which current BD-products fail to deliver.
Way to early to pick a winner, but BD is running significantly behind HD-DVD for 06. Going with MPEG-2 video and Java has proven to be very bad choices.
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