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NJ5 said:
Can existing players read these discs with just a firmware update?

 

It is believed so.  From what I understand, the smaller gapping, which is how they get an extra 2 GB per layer, actually increases the readability of the discs.  Also, there is no known reason all existing players on the market would be unable to read a third layer with a firmware update.  That firmware update could even be included on the 51GB discs.

If Sony intended to release larger BDs, they'd have submitted a specification at some point.  As it is, it looks like HD-DVD will have the storage advantage.