This news is getting "long-in-the-tooth."
By the time HD-DVD or Blu-Ray even begin to sell the same amount or more compared to DVDs.......HVD will be released. Fare more capacity ~1TB.
I remember the Laserdisc guys saying the same thing about DVD when it was launched... "Why bother, it's not even high def?". At launch in 1997, only a few studios supported the format (Paramount and Fox waited until 99 or later IIRC) and back catalog titles were thin. Very few retail stores carried them. Laserdisc had a much richer catalog of titles. And people like you were shouting about how much VHS product was moved.
Meanwhile DVD's been the most successful format EVER and we're here 10 years later discussing its successor. And the fact is that both Blu-Ray and HD-DVD had better launches (in terms of catalog, studio support, and retail shelf space) than DVD did.
So **** about HVD, maybe they'll agree on a spec in 2010 and we'll see players in 2014. Of course by then we'll be moving to 4K (3840 x 2160 resolution) and 1080p will seem so passe.