Picture quality wise, HD-DVD is great. Movie selection wise, it kinda blows. I have the add-on and I do enjoy watching the occasional HD-DVD on it (I usually rent). I own Planet Earth which is absolutely fantastic picture quality and really shows off HD-DVD. But beyond that, there just isn't much of a library.
I admit I have Blu-ray envy -- if M$ made a Blu-Ray add-on, I'd buy it and have both formats. I'n not gonna spend over $500 to have a Blu-ray. I'll wait for the price to drop before going multi-platform.
My heart sank a little when Blockbuster hastily announced that they'll only support Blu-ray. They were my main source for HD-DVD stuff. So if you rent, you'll need to look to alternatives like Netflix or whatever. But if you like the current HD-DVD selection and you plan to buy instead of rent, then HD-DVD is definitely worth it for picture quality - on a 60" screen it is much MUCH better than standard DVD.
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