Actually, I think the $1,000 Denon will also be 1.1 compliant, but can't find out for sure. And any sub $200 HD DVD player is not likely to be full featured either. But that's the point. The vast majority of future buyers will not be interested in high end audio or internet extras. I think the internet connection will be confusing to most, and mostly unused. Best use will be to easily update firmware. So a cheap player that plugs into their TV set is all many will want. Yes, what a waste.
I suspect in a few years we'll see whole entertainment systems sold: HDTV, receiver, wireless speakers, HD disc player, and all easily assembled with idiot proof cables and plugs.
That new, cheaper Sony player is apparently selling quite well. Better be even cheaper ones by Xmas.
More movies = more incentive to buy.
Most importantly, I think Disney needs to stay in the Blu-ray camp. Second, BD+ needs to work, at least for the most part. If it's cracked early - and completely - there's little incentive for Fox to release anything, and for Disney to stay exclusive. At that point, it really would likely come down to who has the largest installed base, which connects to who is the cheapest. Granted, with the PS3 the Blu-ray camp massively outnumbers (5 to 1, last I heard) the # of HD DVD players, but that might not hold. If title sales track down to near parity, it could easily swing to HD DVD. This scenario is doubtful, but possible. Somebody at the baloney company should pay a very high personal price for letting Paramount "get away."