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Yeah, thus far Blu-Ray seems to be winning the format war. It is technically superior, although the triple layer HD-DVD discs will bridge the capacity gap between the two and aside from that, there's not really any significant difference in specs.
Go with Blu-Ray. Better yet, get a PS3. The price of a PS3 is cheaper than many stand-alone Blu-Ray players and you get games with it as well.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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