HD-DVD reads regular DVD's at their maximum speed... 12X I believe. Just because the drives read HD-DVD at 1X (no idea what KBPS that is) doesn't mean they can't read DVD's at 12X. If you have a DVD burner, it probably reads DVD's at 8X. But it also reads CD's at their maximum (52X?). Therefore, games could come on EITHER medium, just like PS2 offers CDROM or DVDROM games. If anything, HD-DVD drives will be easier to make read faster because they are the direct evolution of DVD. Whereas Blu-Ray is totally manufactured differently. I don't want Blu-Ray. It will be slow. HD-DVD doesn't necessarily come with that caveat because the mastering is already familiar.
I don't really want HD-DVD either because it'll add more cost than DVD. But on the other hand, it will be the deux ex machina for Toshiba's war.