From a performance standpoint Bluray is superior in every way. From a marketing standpoint it is more expensive, there are less people with bluray players, and... hmmm DVD has fewer letters? Thats about it. I wrote TimeWarner (AOL whatever the fuck) a letter begging them to adopt bluray instead of HD-DVD. Obviously my letter changed everything, and I am solely to thank.
Put simply... more space, more potential to eventually support much more space (dual layer has been surpassed by leaps and bounds), and yes the coating you mentioned is a fact. Some older conversions suck because the studio distributing it does, that has no reflection on the technology. I THANK GOD for the hard coat though, it was the dream come true for me.
From the Bluray website: TDK Develops New Hard-Coating Technology for Blu-ray Discs
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Posted October 30, 2004 12:00 AM by Marwin
TDK has successfully developed a new hard-coating technology that makes Blu-ray Discs even more resistant to scratches and fingerprints than existing DVDs, without requiring a cartridge to protect the discs. Two separate layers of fine silica particles prevent scratches, and fluorine-containing resins in each layer repel ink marks. The Blu-ray Disc Association (BDA) is pleased with the development because no consumer optical disc that uses a cartridge has ever been a commercial success. The new hard-coating is expected to provide a boost to the upcoming Blu-ray Disc format, which members of the BDA plan to launch next year as a successor to DVDs.
Also:
Storage capacity
Bluray
25GB (single-layer)
50GB (dual-layer)
DVD
4.7GB (single-layer)
8.5GB (dual-layer)