I’m not surprised, I knew HD-DVD would never remain region free. The question is will they just adopt the DVD regions, which frankly never worked so well and don’t make a lot of sense (The UK and Japan are both Region 2?), will they adopt regions similar to, or the same as, Blu-ray (which could make sense with 2 of the three HD-DVD studios also releasing on BD), or create yet another region map?
As for the China-only physical disc… What’s up with that? ‘HD DVD content’ – so in other words it is a new disc that happens to use the same codecs. By that measure, Blu-ray is a “physical disc format capable of holding HD DVD content.” So if it isn’t DVD and it isn’t HD-DVD, what the hell is it?