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The main issue are the two different format. You cannot play a Blu-Ray disc in a HD-DVD player and you cannot play a HD-DVD disc in a Bly-Ray player. So, there are two different standards right now and some studios, like Sony, are going with Blu-Ray and some studio like Universal are going with HD-DVD. Panasonic are going to make a Blu-Ray players and Toshiba has a HD-Player coming out at the end of the year. So, its a battle.
Even if you buy a HD-DVD/Blu-Ray player, there will be very little content for it because it will take some time for the studios to make products in either formats.
Plus, the players won't be cheap at first until the mass consumer see a need to upgrade, which will take some time.
Whoever wins the battle, you are must likely going to get a new TV first before buying a new player. Unless, you are an early adopter and willing to take a chance that HD-DVD or Blu-Ray will be the standard, many of us won't go out and buy a $1000 player and be force to buy another one because the format doesn't exist anymore.
High Res DVD's is still along ways off.
Upconverting standard def DVD's is more likely going to happen faster than HD-DVD or Blu-Ray.
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