JMS:

The compromise will basically come from someone simply giving in and letting the vast bulk of the PHYSICAL aspects of the format be taken from one or the other (probably, in this case, BluRay, due to its higher capacity). The side that doesn't "win" on the physical side will get thrown enough of a bone on the data side so that their IP is part of the patent package that companies will need to license to make a player. Remember this is about two things: corporate (and personal) egos, and most of all $$$$$.