soundtrack wise, on both Blu-ray and HD-DVD, i generally felt that the lossless audio sounded good, but not a vast amount better than a good Dts track. recently though, i've heard a couple of soundtracks which have changed my mind. Ratatouille has a PCM soundtrack, and it sounds astounding, you really can tell the difference. my girlfriend reckoned it was all in my head, so immediately after i put on the dvd of Finding Nemo, with it's standard Dolby Digital track, and we were both amazed by how flat and lifeless it seemed straight after the lossless audio. of course, not every soundtrack is going to be a big improvement, just as some titles really don't look much, if any, better than dvd. but the potential is there for really jaw dropping audio quality.
seemingly Pioneer are planning to launch a new music only format using Blu-ray's lossless audio, basically a successor to dvd-audio and sacd. hopefully this time it'll take off, although i still wish someone would make a blu-ray player that would play all my hi-res audio discs.