SilentMercury had a good start. Sony learned from their previous mistake, where VHS would hold more then Sony's Betamax (and have better quality then VHS, which is why television/news broadcasting and such used it for sooooo long) and was the major deciding factor in the decision as Betamax would only hold about 90mins of video. Now Sony has more space on their side while HD DVD was the superior technology. Studios always want the bigger numbers.
The thing with the manufacturing cost that I read a little while back is that the single layered Blu-Ray disc are a lot cheaper to make as they had better yielding then the dual layers because the yields are just crappy (like 30%-50%.) But that was like 6 months ago.
Lets just hope Amazon keeps those BOGO's & B2G1's going. http://www.nvnews.net/vbulletin/imag.../captnkill.gif