So if blu-ray fails, Sony will have console with an HD drive that is not compatible with standard HD content. So there goes at least some of the selling point of having an HD drive in the first place. If blu-ray flops, then the PS3 can't be advertised as an HD video console, right? Unless Sony decides to do something very stupid and push out blu-ray HD movies all by themselves. (would not put it past them)
I agree with what you're saying, the drive of course can be used for HD game content, that is not an issue. I just can't get out of my mind how Sony is so willing to delay the PS3 (if indeed true, although I don't buy it) because of the blu-ray format.
Would it really kill Sony to do what MS did, and forget about waiting for the format wars to be decided, and just shove a DVD drive in there and be done with it?