Did HD-DVD lose against BD only because of capacity?



HD-DVD’s main advantage over BluRay is described in the following picture:

Fragile and exposed data layer, just like CD. Just on the other side.

HD-DVD is also cheaper to produce, even for same capacity.
BD however has higher capacities per disc, more accuracy and higher reading speeds.
Additionally, there is a BD-XL standard since 2010 with more than twice the data storage per layer and up to 5 layers.
But DVD+R and DVD-R also share the same market.

HD-DVD was marketed in improper approach. Like DVD-RAM.

HDDVD has a HD-DVD-RAM and even HD-DVD-RAM-DL variant, whlist there is no BD-RAM. However, BD-RE-TL supports random writing, it can however not match DVD-RAM yet. Additionally, (HD-)DVD-RAM(-DL) has much more than 1000 writing cycles per disc usually.

My question is:

Did HD-DVD fail in the format wars just because of smaller capacity?

Capacity seems like the only thing that matters to an average costumer. Wasn’t that how VHS beat BetaMax?

Chipset comparisons and differences?