The reason for the late adaptation of blue lasers is until recently it was not commercially viable to make them.
As for why blue gives a higher capacity than red its to do with wavelength, the shorter the wavelength the narrower and closer together the "tracks" on the disk can be. CD's used near infra red lasers, DVD players use red lasers and blu-ray, well blue lasers. In the future I'm sure we'll eventually see ultra violet lasers.
The one snag with moving towards shorter wavelength lasers is the amount of energy required to make the laser light, it goes up considerably for short wavelengths.
Hope this helps the red/blue question.
As for DVD standards I personally prefer using +R, seems to offer much better compatibility with DVD players.