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I dont think its all crap, it actually makes more sense. HD Disc's and Blu-Ray Disc's are being released to hold the new format of HD Movies, which are huge files. The differences in the two types are also the capacity. HD will come in max 25-30gb and Blu-Ray in max 50gb. So considering that i think Blu-Ray is better for the money but still expensive.
The first time i heard of the large capacity disc was to be Blu-Ray and it was Blu-Ray being heard everywhere for like a year. Even a Korean company made a drive for it already which was just the same size as a normal DVD Drive. It was after when HD Discs decided to show themselves to compete with Blu-Ray.
I agree that you can get HD quality in x264/h.264 formats as small as regular sized divx/xvid movies (700mb or 1.4gb). But if you think about it, it makes sense especially for games, where they have small clips of videos pictures, etc to make up the game, hence the final size of the game (oh by the way you need a HD tv to really enjoy PS3 games). i.e. Need for Speed. As for movies because there in vob format and being HD quality would simply make it a big file, and there is no way they will change to another format.
In terms of normal storage it will save a lot of people that have collections of data, movies, pictures, music, etc. The only bad thing about that is if the disc get damaged, scratched, your stuff are gone.
Either way they will be released, and made to use just like we do with DVDs and before you know it everyone will be using them.
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