To bad the UMD market didn't go over to well. One reason I never bought a psp was bc of the games since most of them were ports and also bc the UMDs were $20+ and to my knowledge you can't transport it to the TV.
Anyhow, I think HD-Dvd also has more name recognition with the general public, as the term HD-tv, HD-music, HD-dvd and all that is becoming more popular. A lot of people I know who aren't gamers, don't know what Blu-ray dvds is, but have heard of HD-dvds.
 

"just jumped on the HD-DVD bandwagon because they are a Nintendo-nerd"

I honestly think you really need to rethink a lot of what you said. Sure, blu-ray is a great format, but it's got a lot going against it.
For example, the name: People recognize DVD... HD-DVD is the next logical step in most people's minds. I've been asked, "What is a Blue ray?" already.

Furthermore, the Wii doesn't use HD-DVD, it uses a propriatary format based on plain old DVDs. Of course, that's also dumb, especially since only later editions of the Wii may support DVD, a format that's on it's way out.

The PS and PS2 were good systems, but they also had good timing. The PS2 was especially popular because of it's DVD playing capabilities; it almost singlehandedly kickstarted the Japanese DVD market. However, DVDs never had a major competetor like bluray has HD-DVD.

It's going to be an interesting fight, and while part of me really wants to see blu-ray succeed, I fear it might go the way of betamax.