Well you contradicted yourself on back to back post here.
And here. Now that you are in an emotional state, this is even more fun.
Despite outselling the PS3, the 360 was not selling "incredibly well", especially in the early years. The Wii took both of them to school and had the 360 came with an HDDVD, it would have taken plenty of more PS3 sales with a bunch of people willing to get the "Wii360" as the 360 itself was much cheaper to produce as was hddvd drives over BR drives.
I am glad you started the next paragraph with the PS4 selling better is irrelevant but then you start alluding to God knows what. The PS4 and XB1 would have both used HDDVD had that format won. Simple as that.
Had Warner went with HDDVD, Sony and Disney would have ad to join them as well, just as Paramount and Universal did when Warner made the announcement as they were always solid in the HDDVD camp up to that time. It's not like Sony stuck with Betamax when it lost the format war. (not sure if they produced movies then, but you get the point)
Even in an ideal streaming world, there is a lot of benefits to physical media such as reliable archiving and large data transfers on secure (USB-fordidden) networks as well as simply having the empowerment of actually owning something. I also loved things like commentary on South Park videos. At this point in it's lifecycle, you could pick up DVDs for dirt cheap, same for DVD Rs. That is still not the case with Blurays as this situation surely would have been better with HDDVD. Streaming has been slowly killing physical media. But the failure of Bluray has done so faster than any of the streaming services and ISPs could have hoped for.
In order:
Incorrect. I said that Toshiba knew they would lose and instead of fighting an expensive war tried to make a deal. That does not imply "giving up". That implies trying to make a smart business decision that would benefit them in the long run. You are pretending I claimed something when I did not. If I wanted to claim something I would have outright said it. Don't put words in my mouth.
Still incorrect. One has nothing to do with the other. Stop making up false arguments.
From it's launch on Nov 22 2005 until Dec 31st of the same year they shipped 1.5m units, despite the system only entering production a mere 69 days prior to release. In the US, the Wii didn't overtake the 360 until June 2008. The UK, European, Asian, and Japanese markets were a bit more mixed, but you can't say the system wasn't pulling in some very good numbers for years. Around launch I just don't think a HD-DVD drive would have done as much as you think for the 360. At least not without big redesigns to the system itself to take advantage of the drive. They definitely would have needed to add HDMI out of the gate and would have needed a better video player. It would have been a boon for the larger games that needed 2+ discs (like Lost Odyssey or Blue Dragon) but without a change in Microsoft's priorities and a huge marketing push I don't know.
How hard is to understand that I am responding to your statement about MS going with UHD for the XB1S not making sense? What they would have done in some "what if" universe doesn't matter when the point is about what they did in the real world and why they did it.
If Toshiba found a way to convince Warner to go solely HD-DVD, it would have definitely shifted the balance considerably. The question is, how could they do that? WB likely played both sides to be safe and see how the war went. To get WB would have required Toshiba making HD-DVD more compelling to them in some way. Either by getting Fox or Disney on board or maybe giving them some kind of amazing licensing deal (or something, I dunno).
I basically agree with everything in your last paragraph. The BDA messed up, big time, on many things. While HD-DVD would have faced some similar issues had it won, the price would have made it a lot easier to swallow.