Mike does bring up a good point.
But dreamcastrocks, I'll just say this and then I'll leave it to you... I know you aren't taking much stock in what I'm saying, but you should know I am in the industry and read about this format war virtually every day.
Everyone who wants to take advantage of their HD television naturally is thinking about upgrading. I'm just saying that you should stay very cautious. If you're too young to remember Beta, I'm sure you must be old enough to remember laserdisc. I was a big proponent of it (it was generally considered to be the cinephile's format--for high-end movie fans). But in 1997 when DVD was introduced, it changed everything. DVD was a huge upgrade over VHS and Laserdisc (which was still just an analog signal). DVD, however, was digital, and blew everything else out of the water. Does HD-DVD or Blu-Ray blow DVD out of the water? Absolutely not. Like I said, the difference between regular DVD and the hi-def formats is marginal.
I just think that right now, spending money on either format is a waste. You have everything to lose and nothing to gain. If the war ends with both formats virtually destroyed, you're screwed. If one wins and you picked the wrong one (and HD-DVD to me appears to be the format that might lose), then you're screwed. If one wins, however, you'll be double-dipping when the studios start releasing movies that actually take advantage of the format, which all current HD releases do not. (Like I said, M:I III appears to be the first to make the attempt)
And you're wrong about the online delivery--and 5 years is not a long time. It's already being done in other places around the world. DVD has been around for 9 years already, time really flies in this business.
The problem with the new formats is that 75% of the consumer base for DVD will have no need to upgrade. One, they don't care, and two, they don't even know the true differences (and will probably be told countless times about how the format war is like VHS/Beta, which will most definitely turn them off). Also keep in mind, when VHS beat Beta, Beta was the more superior format.
I took a chance in 1997 when I adopted DVD, but the difference in quality (and software prices--remember when VHS tapes were $80 bucks when they were new releases?) was so huge it was worth the risk. Right now, either new format is NOT worth the risk. I learned my lesson from laserdisc.