I can't help but think this latest move by Warner is going to finally spell the end of HD DVD.
I admit to having a soft spot for HD DVD, and not just because I bought one of their players (I did so at the $99 price, knowing if it lost the format war the very next day I'd still get my money's worth before buying a BD player -- no regrets). I'm not even sure why, except perhaps that it felt more consumer-friendly. The players were cheaper, the discs were cheaper (to make, not to buy), and there was no region-encoding.
The war's not over, though. I expect we'll see some more battles going on. But my gut tells me we won't be seeing people buying HD DVD players for Christmas next year.