For what it's worth, the porn industry is backing Blu-ray, or at least that's what I read on Slashdot. Here's some recent info on Blu-Ray.
I think we'll all be watching DVDs for some time. There are bigger issues than screen resolution -- namely DRM. Evil, naughty DRM. Filthy, troublesome DRM. If you don't know what DRM is, you need to find out, now. It's a giant trench filled with sharks with frickin' lasers on their foreaheads, and it's between us and next-gen content.
[edit]
Here's some info on the DRM models being batted about:
Blu-Ray
HD-DVD
HDMI
Bookmarks