Technology wise, Bluray is superior to HD-DVD.
Take raw storage. Bluray single layer is 25 GB, HD-DVD is 15GB. Double layer is common on both formats 30GB and 50GB. Bluray has scaled to 8 layer 200GB disks already (prototyped). There is a 3-layer 51GB HD-DVD and that's about it.
Now, let us look at transfer rate. Bluray (as in movies) has a peak transfer rate somewhere north of 50Mbit/sec. HD-DVD is limited to about 30Mbit/sec total. I own a PS3 and I can monitor the bitrate while playing movies. I have seen 40+ Mbit/sec for video (H.264) and 6+ Mbit/sec for audio. I have one Bluray disk that has 13.9Mbit/sec audio (5.1 channel 24-bit/96kHz PCM).
While both HD-DVD and Bluray support the same codecs (MPEG2, MPEG4-AVC aka H.264, and microsoft VC-1), the user interface and navigation is done in java (BD-J) in bluray and a microsoft technology called HDi in HD-DVD. Most HD-DVD movies use VC-1 also not AVC. Since Apple has a lot riding on AVC, I think it is in Apple's interest to pursue Bluray.
Microsoft has a lot more input into HD-DVD compared to bluray. I think they are doing this to spite Sony and to also not allow any disk technology to mature.
I would really like bluray to win!!