Fireball,
the reason for us to pick HD-DVD first (which does not mean "only") was basically an idealistic one.
Personally, I'd like to see Blu-Ray drop dead and vanish (if there were another, less restrictive format than HD-DVD, I'd wish the same for HD-DVD) - despite the technological advantages you mentioned, which are undisputable.
I'd like the idea of Sony learning, that tying up their customers, will make those simply not accept their product.
Sadly, this is not the conclusion they will reach in the end - rather that marketing failed to make the format a success. But I can dream, can't I?
As soon as we have AnyDVD/HD out and ready for sale, I will take a closer look at the Blu-Ray formats and requirements - especially at BD+, which will probably require some additional reverse engineering.
After that, further decisions will be made.
From a consumers point of view, we can only hope, that one of the formats drowns soon, because as long as both formats are out there competing, many (most?) titles will only be available in one of the two formats. Not being available to those, who chose the other format for their home entertainment...
This whole HD-disc war is being fought out on your backs, guys, and sadly enough, you're also funding the money for it