Ron,
DVHS was always going to be a temporary format, but I now have a collection of around 60 D-Theater movies and a whole bunch of OTA HD recordings and have been enjoying them for the past couple of years and will continue to do so until they are replaced over time by the new formats. What it very clearly demonstrated was how good high bit rate mpeg2 could be. And there is every expectation that the new formats will be even better...
OTA broadcasting is a poor advertisement for HD, IMO, as there is a conflict of interest between quality and quantity (more channels and consequently lower bitrates = more revenue opportunity for the broadcasters).
You've seen yourself that SD DVD is better the OTA SD; it will be the same with HD discs vs OTA HD. If you want high quality HD, the new formats will be the best opportunity to get it...
Cheers,
Mark