This is a good start, but it remains to be seen whether other companies --- both manufacturers and studios --- jump on board. Having Sony as one of the negotiators is a good thing (the only company to be both content and tech) but I could see a studio holding out, like DreamWorks and Disney did (initially favoring Divx over DVD.) All it takes is one manufacturer (like Panasonic) to kick out their content in a rival format to delay the transition.
Glad to see that they've decided to try and compromise. Working at Blockbuster, I was not looking forward to the HD-DVD/Blu-Ray format war. Even if most of my customers probably aren't aware of a next-generation format yet.
I actually really liked the Michael/Toby stuff, mainly because they've managed to go a long time without any actual confrontation between the two, and I really think that's something that needs to be paid off while they've still got Steve Carell.