Word comes down that the Matrix Trilogy and Ultimate HD-DVD will support "TrueHD Audio" and the "In Movie Experience" (iHD - HD-DVD Interactive features). This makes the first killer app for HD-DVD even more killer as TrueHD is a feast for ears and should be mandatory for most flicks.

How important is the lack of Uncompressed HDMI Audio for the Elite model of the 360? Very important when it comes to a major Sci-Fi/Action release such as the Matrix on HD-DVD. No support means one cannot have the best possible audio which is one of the key selling points of HD-DVD. If you want the best possible audio, I suggest picking up the Toshiba HD-A1 (last gen model), HD-A2 (going for 399.00) or the HD-A20 (going for 499.00 and supports 1080p). Remember, to support True HD you need to use HDMI or in the case of the HD-A1, you can use the analog 5.1 outputs.
The In Movie Experience will bring Picture in Picture Commentary and Picture and Picture overlays featuring how certain stunts and fight sequences were filmed.
The Matrix on HD-DVD is only 10 days way and considering the popularity of the Matrix series I suggest ordering from Amazon or being at your retailer (such as Best Buy or Fry's) when they open on the morning of the 22nd. I plan to be at Fry's at 8AM to snag my copy.
In addition to the Matrix supporting TrueHD and the In Movie Experience, there will be "NO" Blu-Ray version until sometime in Q4..