According to an article at Ars Technica, Hollywood studios have agreed to delay forced quality downgrades until at least 2010. This means that even if you don't have HDMI, you can still enjoy HD video for at least a few years.
The conundrum isn't apparently lost on the consumer electronics industry or Hollywood. According to German-language Spiegel Online, there is reportedly a behind-the-scenes, unofficial agreement between Hollywood and some consumer electronics manufacturers, including Microsoft and Sony, not to use ICT until 2010, or possibly even 2012. Without providing more details, the report suggests that Hollywood isn't exactly happy with the situation, and could very well renege on the agreement, such that it is. But the agreement is there nonetheless, presumably to help the industry transition to HDMI. This could explain why the very same studios that pushed for HDMI and ICT have recently announced that they would not use it for the time being.
This is definitely good news for consumers. If you'd like to read more, the entire article can be found website.