Well considering that you can get the HD DVD player for that cheap and most HD DVD movie titles only cost about $5.00 each it is a good start for the titles released already, but sooner or later you will want to add BD for the newer releases and future releases. Also consider you will likely want to buy a back up HD DVD player IF you buy a lot of titles on HD DVD so they can still be played down the road also as part of the cost of getting into HD DVD.
You can get a BD player for about $250.00 right now I think and just rent BD movies from Netflix at under $2.00 per rental if you watch them fast enough and return them, so in the long run you might be better to into BD and just rent until BD movies get cheap enough to own them at YOUR price point.
The final decision would have to be yours, but I think you NEED to allow for HD DVD player redundancy as part of the cost of getting into HD DVD at this point. Of course, the stand alone HD DVD players are also excellent upscalers also and at $50.00 they are a good deal just for that use if you think about it.
I own 2 HD DVD players that work and 2 that do not work, and I am thinking about buying a 3rd HD DVD player as a backup myself while they are still available.
Keep in mind this is coming from a staunch HD DVD supporter back when it was a viable format, so I am not just pushing BD and want you to understand the full cost of getting into HD DVD right now.
Hope this helps!