I honestly doubt either of the formats will really take off for a good couple of years still, especially in the UK and Europe, as HDTV is not widespread compared to the US. DVD is still an excellent, and relatively new, standard at the moment for films, and a lot of the general public, especially those that may not be able to afford new DVD players all the time, are not going to want to spend shedloads of cash on a new player for either of these technologies. As to actually take advantage of Blu-Ray and HD-DVD, you're going to have to buy yourself a compatible HDTV. That's a good few hundred pounds, especially in the first year or two, players will be expensive for what you get.
What I see most people waiting for is players that will support both HD-DVD and Blu-Ray, and maybe even for one of the formats to either win or lose, and become the dominant standard. What I fear is going to happen is that we're going to have a 50% split of studios bringing out their films on one format, and not the other, which will ultimately confuse the general public, and without universal players, it's going to be useless.
For example, those people that are going to use their PS3 as the sole DVD player. What happens when half the DVDs you want to buy come out on the HD-DVD standard, as that studio doesn't want to support Blu-Ray? You're either going to have to buy the DVD version, losing quality, and defeating the object of Blu-Ray, or getting another player that'll play HD-DVD.