I think in the long run it will be better. Is MS going to release DVD and HD DVD games? Will some games only be available on HD DVD?
Let’s say Halo 4 or whatever comes out and its only available in HD DVD, if you want to play this game you have got to spend an extra $180. So $180 + $60 to play just one game. Now this may or not be the case, its just an example.
At least with the PS3 you know all games are going to be BD.
EDIT: Or maybe no HD DVD games at all. I have no idea.