Not to mention that Europe will be seeing the XBox360 long before the PS3 comes out here. That, in itself, will mean that Sony face an uphill battle against a pre-established competitor.
While Blue-Ray seems to have the better range of storage and usage, I fear that it could be in for a pretty rough time. Personally, I'm no big fan of Sony's marketting practice, but then Phillips, who were involved the CD-Rom, were far from angels themselves.
If it were a question of opinion of the companies, I'd be behind HD, if it were a question of the most sensible media to use, I'd be behind Blu-Ray.