anyway, here's my perspective on the whole thing:
If VC-1 is as good as a whole lot of people are saying it is, it won't go away for a while (if at all) as long as blu-ray is still around as a format. Microsoft will continue making royalties off of sales of bd's using that codec. Toshiba is screwed, yes, but let's not forget that blu-ray players are backward compatible with dvd and so toshiba will keep making some sort of royalty off the sales of bd players. Time Warner must've not really ever had much faith in hddvd since they've been format neutral for just about as long as blu-ray's been on the market. Maybe the aforementioned standard dvd royalties coupled with whatever deal they signed with the BDA made it that much easier to just drop hddvd altogether. WB probably also looked at the really big picture and saw hddvd exclusivity as prolonging the race and keeping either format from really taking off, though who is to say what would've happened had they not sided with blu-ray?
One thing I said several months ago is that once one of these formats wins and becomes the new standard, it'll be all we ever really need. I still stand by that because just as vhs, beta and laserdisc were the first analog tv formats, hddvd and blu-ray are the first hdtv formats. I'm convinced that the reason there even was a format race in the first place is because these companies realize hi-def is the future of television. I mean, how soon are we going to see televisions produced in a large quantity that have a resolution greater than 1080p? We're finally beyond NTSC and PAL which means we can watch movies at 24 frames per second just as they are in the theater. From what I've read here and there, people used to watch 16mm prints of movies on a projector at home. It would seem we finally have in these new formats the television equivalent of that.