The demise of HD-DVD?

There was a lot of talk about that when the 60g Ipods came out and the comment made by the high end guys was "whe Apple builds an Ipod with 800G of storage that supports a high df format, then i will be happy" For true high definition, i"m not sure how much more compression you can do. This isn't MP3 we are talking about. People don't seem to be willing to accept an inferior video format like that have been with music. To have a decent sized HD movie library, you would be talking about storage capcity that just isn't available on anything other than a disc right now.
 
i think theres mileage in optical disks yet, a 1TB storage box would only store 25 HD films, and a 40GB film would take an age to download over even failry fast broadband (around 10 hours on an 8Mbps connection)
 
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