Also the AACS system worries me. It basically means that each time a key is leaked it becomes invalid - in other words, it won't be used on subsequent HD-DVD/Blu-Ray releases to combat piracy. Well fair enough, however what will happen is that new HD-DVD players and Blu-Ray players can have more keys then the first ones did, and so eventually once all the original keys have been cracked/leaked the current HD-DVD's or Blu-Ray DVD's being released will no longer be able to play on older machines!
As if that isn't bad enough, when hooked-up to your equipment you cannot watch it unless it takes the encrypted signal - and if it doesn't it'll be scaled down. Now I know people who bought HD-ready sets BEFORE this was implemented in them, as well as 2 people with home-movie-projectors (professional ones mounted to your roof with the three colour guns, not cheap lcd or data-projectors) that are also capable of HD but are not rated for AACS encryption. This would mean spending more thousands of dollars on replacing a perfectly good professional-grade projector to get one that takes the encrypted signal so you can watch 1080i - or else you'll just have to watch the scaled-down version. And by the way, yes it's expensive to replace the projector bulbs - but that's nothing compared to replacing an entire projector!
And it just keeps getting worse and worse.
I hope HVD or even DMD will be released to the home video format and be more consumer friendly.
Blu-Ray encryption goes even further - restricting even more the flexibility (or what's left of it) of use. If, 5 or 6 years from now, I have to choose between HD-DVD and Blu-Ray, I believe I'd choose HD-DVD simply because it is a little more flexible then Blu-Ray. But I'm not happy with either, not in the least.
I won't be interested in a format that will not play on HD equipment my friends and family owns. I wouldn't support a format that doesn't support them. I won't be interested in a format that tries to force you to update your hardware just to watch their releases. I remember when people were rushing to buy HD-TV's before the AACS encryption was implemented – because they didn't want it in their TV. Someone will eventually build "digital signal stabilizers" like the analogue ones you can get that remove macrovision.