Also, it should be noted, that while you think Blu-Ray will eventually vindicate Sony... there are a LOT of hurdles in the way. More then you'd think.
Blu-ray is STILL well behind it's predicted targets in 2007... and the loss of China is a HUGE loss. CBHD could actually become the leading world wide format leader... just from China.
There are additional worries that China may export the format to other poorer nations. Which, said nations may gladly accept, sick of being poorer yet still paying more on a per unit basis.
CBHD is scary because Toshiba just sold them the HD-DVD technology for an incremental fee. They don't even pay royalties per disc.
It really was a sly move by Toshiba.
http://news.cnet.com/8301-17938_105-10303224-1.html