I have to say I think HD DVD is clearly better. For a start it's cheaper and has more functions at present. The only things that Blu-ray has over HD DVD is that it has more storage, although it makes very little difference in the end as it's what you can do with that storage. Why would you pay more than twice as much for a Blu-ray player when it does even less than the much cheaper HD DVD systems.
Although I personally think that both of them should be obsolete, as the technology already exists to make a flash card that would be smaller and more robust, with more storage and would run at faster speeds. It makes me wonder how long these formats will be around for.