I don't know about other countries, But Australia is going HD (digital) on all its free to air channels, so we all need digital set top boxes to watch TV at all. . That with it will bring the desire for more HD TV's.
Therefore the HD format war will be more wide spread as the community become more aware. In Australia - Blockbuster and soon to be Video- Ezy will only rent out Blue Ray. HD DVD is pretty much non-existent and Blue Ray is getting it's name out there, through the PS3, advertising etc. There is one ad shows HD in all it's beauty, and the guy is using a Sony remote :P
Now Australia is a small region, so who gives! But generally Australia reflects Europe. BR has more foothold on Europe than HD DVD. Japan is 90% of the market, which leaves the NA. BR is winning there as well. So when it all comes together globally, BR is becoming the clear winner.
When people find out that the ps3 is more than a console, then BR will benefit as well the ps3. So in turn, BR and the PS3 will help each other and gain more foothold globally. NA is going to be the hardest region for the ps3, that is until BR wins. It's all about patience and Sony continually pushing both the ps3 and BR that will eventually achieve it's goal of being an industry leader once again.