Correct, HD-DVD players use a blue laser, I think. Whatever the color, it is a higher frequency to allow smaller 'bit' burning in the substrate, thus increasing the amount of info that can be placed on the same, physical sized platter.
The hardware player should still work.
As for various competing formats for all sorts of things (VHS/BetaMax, HD-DVD/BluRay(SP?), Windows/Apple, etc.). There are few 'formats' developed outside corporate entities. Thus, they will almost always start out as 'proprietary.' But if they are developed by a business, they have a monetary interest in having the format adopted. It is rare that more than one 'format' survives. And the one that does may not be the best. Most people will simply vote with their dollars/pounds/euros/etc. Cheap often wins over best.
No, I don't have any BluRay disks/discs. Never bought a player. We currently don't even have a DVD player in the house (nor outside, either!) other than the ones in our computers. So, don't blame me for the HD-DVD/BluRay war!