Toshiba announced today that they will, "no longer develop, manufacture and market HD DVD players and recorders." according to this Engadget article.
So Blu-ray it is I suppose. I'm hoping that we can just start to download 1080p soon though. I've been dreaming of a multi-terabyte storage array with a Mac Mini sitting at each TV in my house to hook into it. That's not really far off as XBMC on OS X continues to improve. Hopefully they will get 1080p decoding working on currrent gen Mac Mini's. That would be sweet!