According to
Sonic, Sonic Scenarist, which is a professional level DVD authoring tool... supports both Blu-Ray and HD DVD authoring and supports both AVC (H.264) and VC1 compression for both formats(as well as MPEG-2)
Sure, I could see Sony promoting MPEG-2 for Blu-Ray due to its higher capacity, and Microsoft promoting "their" VC1 compression for HD DVD, but I believe both formats must support MPEG2/AVC/VC1 compression.
I'd say there was very little to go by as far as Blu-Ray vs HD DVD in the OP linked article. Its more like a user comparison between a couple of gaming console media players with several caveats.
He is using analog for one and digital connectivety for the other console. His display isn't calibrated to the hardware, instead he simply uses default setting....? Yikes. The comparison shots are compressed and not of the same frame either.
Basically, you have to go by what he says he "sees", and which console has the best PQ at whatever default settings for the console and displays happen to be. Not real comprehensive IMHO, but maybe what a typical user may be dealing with "out of the box" I guess.