It seems clear that we will see both of the formats at least for a while, as right now there is no clear winner. Perhaps due to higher manufacturing costs, coupled with the non-critical (for now) high storage capacities which Blu-ray offers, HD-DVD probably holds a slight advantage, especially for home recording. However, the companies supporting Blu-ray may manage to reduce production costs and at least members of CD Freaks can find ways to take advantage of this extra capacity.
Regardless of how this war plays out, we will be the winners when one considers the advantages of these new optical storage strategies.