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Didn't Blu-ray win because it was basically neck and neck with the amount of studios backing HD-DVD vs Blu-ray. I think everyone was waiting to see what the final studio would pick (off the top of my head it was either Fox or Warner Bros).
Sony paid said studio basically a massive multi $m bribe to pick Blu-ray (to help promote their new console, the Playstation 3) which they duly did and that format was declared the winner.
HD-DVD would've been great as the winner as the specifications don't include any form of region protection. But blurays hold more data and therefore allows for better quality encodes.
It seemed more like PS3 decided the winner to me at the time , since it came with a blue ray drive while the xb360 only came with a DVD drive and the HD-DVD drive was sold separately.