I think it does for one reason, and that is becuase people exspect HD titles to be as cheap as SD-DVD's! And unlike Laserdisc at the time it to was a nich market as well. And HD is nothing more than a nich product at this time. And unless consumers embrase at least one format and support it. It to will end up being a nich format that may just end up dead just like Laserdisc. Granted DVD helped kill it off with titles that where cheaper and of good quality, oh ya and you did not have to flip the disc over.
Most people have been spoiled by the cheap prices of SD-DVD and many of them never ended up paying top dollar for laserdisc releases! I have no problem with the prices right now but I would exspect them to start dropping in the near future. I do not dismiss the opinion that the combo discs are most likely ment to maximize profit. If you where running a company and could put a product on the shelf that took up 1/2 space. Wouldn't you consider it and offer it over pressing and shipping twice the product? And considering that its a very small mark up its not like you are paying for two retail copies of the movie. And if you have kids and you have a DVD copy of a movie allready. Then if you where to buy a combo disc and the kids destroy the dvd version you will still have the combo version with the dvd side you only paid $5 instead of going out and buying it at full retail. I also see it as a big plus for people that do not have HD-DVD at this time. Because as they indirectly build up a HD collection and if HD-DVD wins the format war. They may decide to go out and buy that HD-DVD player and they allready own a good size HD collection allready. Someone can allways say they do not want the dvd version of the movie because they allready own it. But if that is the way HD-DVD is going to move towards. And someone does not like it then there is allways the Blu-ray option that only offers one HD version on there discs and no SD-DVD version at all. This is the best way that HD-DVD can try to bring the average consumer to there format eventually. I can see why they are doing it, if someone has the HD titles they will eventually brake down and buy the player to watch them. If a consumer is buying combo discs and own a HDTV allready. Once they own a large number of HD-DVD combos and the price of the players come down, why not buy a HD-DVD player. This is all assuming that HD-DVD wins the format war or last long enough for consumers to justify the player becuase the indirectly purchased the HD titles.