It's been a little over a year since we discussed the next generation video formats on this forum. When we last talked about it both formats had just been released and the consensus was that it's best for people to wait and see how the format war plays out.
From what I hear around the net it's looking more and more like Bluray is going to come out on top. The relevant facts are reviewed at TheDigitalBits.com in this article in which they predict that if there is a clear winner, it will be Bluray.
Personally, I would like to own an HD player but they are still too expensive for me. I'd probably go with Bluray and I might even go the PS3 route in spite of my general dislike of Sony. Ideally though, I'll wait until players hit the $200/$250 mark.
Also, I have a massive DVD collection. I am perfectly aware that the next gen video formats are backwards compatible but I find myself wondering what I'd re-buy. X2?: Definitely; Ernest Goes to Camp?: Probably not.