HD DVD and Blu-Ray, why the confusion?

Maybe my title doesn't make sense, but oh well. We have all probably heard the cries and woes and victory chants as a result of Time Warner's announcement to become a sole supporter of Blu-Ray, and no longer support HD DVD. I personally don't see this as th death of HD DVD, but it certainly is a blow to the gut. I've played with both formats, seen what they have to offer and can plainly see the differences are few. I found that HD DVD was a better product and for the price, practically a bargain. It delivers incredible picture and sound at an affordable price. Blu-Ray on the other hand, I found the players moslty bulkier, kinda slow, and expensive. Still they have been making improvements, and the one apparent benefit to the computer market as oppossed to the movie market is the space, Blu-Ray has the ability once revised and updated some more to house more gigabytes per disc.
Now why would the movie execs and many people think that Blu-Ray is better?
Maybe it has to do with some money floating around, but I think mostly it is perception. For some reason, people tend to lean towards the idea that if it costs more, it is better. But that is not always the case. I've seen this in retail, many of times. One example from a year ago or so. We had for sale an HP computer and a Sony computer with the same exact specifications. The Sony sold for about $200 more and my customers still thought it was a better machine. But the fact was that they just had different cases, perhaps a different vender supplied the ram. But the same computer.
Another example, would be to compare the screens on notebooks. Most people would perceive the sony screen to be better than HP or Gateway, etc. No one makes their own screen anymore, they are basically the same save for some ultra mobile models.

And thats what I think this is, a game of perception. Personally, I would have put out movies on both formats and let consumers choose. Either way, I'm enjoying my HD DVD player and hope that we still get some good movies released for it. Transformers, 300, Batman Begins, Unforgiven all look and sound incredible, its like being in the film. It is easy to lose where you are at.
What are your thoughts?