The one nice thing that has come out of this is the price war that this has sparked. Now you can get a Toshiba A3 HD-DVD player + 7 movies for less than $130. The player is also one of the better DVD upconverters on the market, so even if HD-DVD goes belly up, you still got a great DVD player.
Another thing to remember is that the best Blu-ray player is the PS3 ($400) as this is the only one that is upgradable to the newer standards, which is still in evolution. Blu-ray 2.0 won't be finalized until late next year. So to get a Blu-ray player that won't be obsolete, get a PS3.
One other note, as has been noted in the news, Microsoft is looking for internet portals to provide content online (news, movies, etc) possibly to provide content like iTunes does for the iPod. The latest target has been Yahoo, which just rejected a $44 billion from Microsoft. Microsoft has been in contact with them and Time Warner for probably 2 years now. At any rate, Microsoft is flush with cash and should they turn their attention back to Warner/AOL, then they have their internet portal and content as well, not to mention the Blu-ray exclusivity being cancelled before the first disk is pressed. The main barrier besides the pricetag is the size and logistics of the M&A. Oh, did I mention that Paul Allen, who controls an acquisition company Capital Research & Management and cofounder of Microsoft, already owns over 6% of Time-Warner?