I am a tech junkie and have owned The Toshiba HD-A1 and A2 HD DVD players, as well as a PS3 and a Philips Blu-ray player. I have a pretty nice home theatre setup with a HD Projector with a 92" screen. I have 5.1 surround sound as well. What I have found is that both formats are basically the same as far as quality and ease of use is concerned.
BOTH types of players will do an outstanding job of playing DVDs and upconverting them for your HDTV.
Blu-ray has more studio support, but both formats have released about the same number of titles so far. Studio support can change with one press release, so we really don't know what will happen in the future. We do know that neither format has pulled away (or looks to pull away anytime soon) enough to cause the collapse of the other. We really don't know if one, both, or either format will survive past a niche phase at this point. What I can tell you is that your Blu-ray or HD DVD discs won't stop playing if a studio stops releasing movies on a particular format. And your DVDs (and Blu-ray or HD DVDs) will still look outstanding on your player even if either side stops selling players.
There is still plenty of uncertainty from both sides. If you would like to take advantage of a Hidef format, my suggestion would be buy an HD DVD player if you can get one for $100. That is an excellent price just for a great upconverting DVD player, let alone a Hidef disc player. Just make sure to look at what movies are available on either format before you make your final decision (you might like the selection of one format better than the other). Grabbing an older model PS3 for about $320 is an option out there as well if you want a Blu-ray player instead.
I picked up an A2 for $98 at Wal-mart a week and a half ago and can't see myself being disappointed for that price. I am thinking about going after the cheap PS3 as well.