That sucks. I didn't know really a lot about either format until recently, and I thought it was pretty clear that HD-DVD was the overall better format. It showed a real care for the audio portion, something Blu-Ray seems to really gloss over.
But hey, the better format doesn't always win. From what I understand, Betamax was a better format than VHS.
In the end consumers win now that the war is over. Well except those consumers that were early adopters of HD-DVD.