1. A business does not exist solely to ensure their competition will get better. In fact, most businesses would resent the implication that they should continue to waste their efforts for such a reason. Surely there will be greener pastures for Toshiba to invest in. If they stick with HDDVD for any length of time, it will be because of existing contracts and becauseafter all they've invested in it, they want to wring out every last possible penny they can.
2. Competition from Disney, Fox, Sony, MGM, New Line, Lionsgate, and, eventually, Paramount, Dreamworks and Universal will provide enough reason for the studio to make better discs that take advantage of the format. Please note that DVD never ceased innovating despite a practical monopoly for the past 7 years.
3. Once again, it is the studios who will force BluRay on consumers whether they like it or not, as they are primarily interested in it's ability to thwart pirating (whether it will be as successful as they hope is another matter). Once BR players hit $99, studios can safely stop releasing new films on standard DVD, essentially forcing consumers to make the jump whether they want to or not (in this respect, not all that differnet from video game companies that stop supporting old hardware in order to push players into the next generation).
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