Not really enough room on a DvD on the highest recording quality you get about 2 hours. HD-DVD yes, but then no consoles coming with a built in HD-DvD player.
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My point is, if your a movie buff, it's REALLY early to say one of your big reasons for buying a PS3 is for movies. If it doesn't take off, then there wasn't really any great reason for including it in the PS3. I don't really see games taking up 27 GB of space anytime soon.
+ Blue-Ray is more expensive, at least, for the next few years at least. That will be reflected in both the price of the PS3 and it's games, I believe.
It's the best format out there, imo, but it clearly has real drawbacks.