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I cant say which is better at this early stage but i think that blu ray is probably edging forward in popularity over hd dvd.
mainly due to the ps3 being blu ray compatible but also blockbuster has made its mind up which is better by only stocking blu ray films and not hd dvd,and with the rumoured release of the star wars films being exclusive to blu ray that could prove to be just the push blu ray needs to win the next gen format war.
But hd dvd has not given up yet currently you can get your hands on a stand alone hd-dvd player for under 200 quid and if you already own an xbox 360 you can get the add on hd dvd drive for under 100 pound.
you never know what might happen both formats could flourish LG certainly thinks this could be a possibility as it now sells a player that is both blu-ray and hd-dvd compatable.