According to this Post and many other sources, AACS, the copy-protection used on HDDVDs and also on Blu-Ray discs, seems to have been cracked.
This would be nice, because it would make it possible for open source media players to play encrypted, legally bought movies on these new disc types.
The same thing had to happen to make DVDs, protected by CSS, playable with open source players.
AACS isn’t cracked. It’s just a leak in an unknown HDDVD player. It stores the key to decrypt the contents on the disc in memory where you can read it.
This is a general problem of the whole solution as long as you don’t use a TPM to store those keys in.
But I have not read about someone that could reproduce the crack on his system, so there is still a possibility that it’s just a fake.
Of course you are right that it would be nice to play those files with open source media players, but I doubt that will happen so soon.