HD-DVD's triple layer discs will make storage a moot point only if older players are proven to work with such discs - I haven't heard anything definitive either way.

Cost of hardware is finally starting to become less of an issue. The disparity that reached its height with the HD-A2 blow-out at Wal-Mart last month has diminished, as there are now two BD players retailing for $299 (the Samsung 1400 and Sony S300) and HD-DVD players are once again starting around $199 (and closer to $299 for players with multichannel analog outputs). Also, despite the lower manufacturing cost for HD-DVD discs, software for the two formats remains very similarly priced. The tendency for HD-DVD's to be released as "combo" discs actually puts HD-DVD at a disadvantage, as those discs (which are HD-DVD on one side and standard DVD on the other) are more expensive.

There's one factor that should probably be added into the mix: software options. With Warner, you can pick either format and miss little or nothing (Matrix isn't on BD yet, but will be next year I believe - typically Warner is releasing everything in both formats). Otherwise, though, you will be locked out of several studios by picking one format. Universal is solidly in the HD-DVD camp with Paramount HD-DVD exclusive for at least another year or so, whereas Sony, MGM, and Disney are firmly Blu-ray (something that is pretty much guaranteed to remain true for at least Sony and MGM due to Sony's stake in BD). How this issue affects you is an entirely personal decision.