"competition bring lower prices - lack of it = stagnant prices."
weird that people still have not understood it. Competition is between companies not between formats. DVD prices came down without any competition from competing formats. There is perhaps a case for competition between HD-DVD and BluRay players (although there is an even stronger case for competition between Sony and Samsung BluRay players because its easier to compare them) The only exception was that Toshiba was heavily discounting HD-DVD players to push its dying format, but this wouldn't have worked for a long time.
For the discs? Why would Universal make HD-DVD discs cheaper than BluRay discs? They do not care on what format their movies are bought.
Here the only thing that helps is a broader userbase with lots of users outside the early-adopter circle. And this will only happen once the format war is over. (Which seems to be the case)
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