Here we go again!

True High Definition picture without compromise, the best sound quality, the best choice in content, the most in special features, and of course the most disc storage capacity. No tradeoffs. No compromises,” commented Chapek."

HD-DVD offers (depending on studio) same audio
HD-DVD offers same picture quality (however early blu-ray movies were mpeg-2 codec).

Now the content side of things is the issue technically HD-DVD is the only format to offer the most in-movie experience with the most content and interactivity many blu-ray titles do not support this and or until JAVA+ is released meaning many with early blu-ray players this feature will not be available.

Its not the consumers who look at which disc has the most space but studios like Walt Disney who just approved of a 51gb HD-DVD by Toshiba.

I dont care about space nor do I ask at the kiosk in store 'Hey how much space on this one?' If the movie is HD then its HD the only ones who have a compromise is blu-ray since many additional features are on hd-dvd only AND many blu-ray movies used mpeg-2 encoding AND many many blu-ray movies are region locked whereas HD-DVD's are region free.

Can you name 5 movies on HD DVD that have DTS HD Master Audio?
The limitations of HD DVD becomes apparent once the HD media matures and people demand better results. Once HD DVD is forced to complete with Blu-ray and include the latest lossless audio on the disc you will see the video quality suffer.
Can you tell me why Paramount released Transformers HD DVD with out lossless audio?

You make a point about the DTS HD audio but I am sure many people look at the back to see which one has what audio when choosing a movie.

But the big question here is how many people own a HD surround system? And do they even exist? I dont see any major company like Sony, Samsung, Toshiba even selling HD Surround systems.

What I will say is when watching a blu-ray movie on my PS3 I can use the audio option via the remote to press +1,2,3 so the audio gets a boost so its even louder by not increasing the volume but this is a PS3 feature same what the PSP has.

I was dissapointed with the sound on Transformers I had hoped the sound would have been louder and clearer.

But since no one owns HD surround sound technology such features of True HD sound is pointless, I havent even read any company even looking to release such systems for next year even so when will it become available?

I think thats probably 100% the limitations of your sound system and nothing to do with the movie... I presume from this general discussion you have watched this on an imported US HD DVD, which you would only do if you could watch it on an HD screen. So my question is, what is the picture quality like on the cgi? Ive heard good things. Can you make out its cgi, say like King Kong, or is it generally crisp and indistinguishable? Decided to put it down as one of my xmas presents so have yet to watch.

Again as for caring about DTS HD or Dolby TrueHD.... unless you have a £10,000+ sound system you are not really going to give a rats about them. Theres a very high probability that if your reciever can even accept DTS HD, it will downgrade it to a 1.5Mbits/s lossy core stream. A compressed codec like Dolby Digital Plus will be more than fine. Also, HD DVD will happily include DTS HD, as will Blu-ray, on every title, once the formats have matured.