Well some good and bad points for both formats I think...however at the moment I think it is just the consumers who are losing as we are being given a choice of two formats and don't know which one to go for yet - and thats assuming both don't fail which may be the case.
I think the cost of the players will determine what is the winner though, as people have said DVDs didn't really take off until there were affordable players around. At the end of the day, probably about 75% of peope just "keep up" with technology, e.g. they buy the technology they have to in order to keep listening to music/ watch films. Ultra high end TVs and media players don't matter so much to them, and lets face it most TVs/media players/hifis etc are at least adequate these days. If a consumer walks into a shop, sees BR and HD players on demo (which look about equal IMO) but the HD player is a lot cheaper, then they will just go for that one.
As for the PS3's BR player, it is actually considered rather good and better than a lot of dedicated G1 BR players. I actually think the PS3 is well priced with this included, the question is do you need a BR player at the moment? I don't think you do.