You seem to think the A380 and 787 are competing for the same customers, that's like thinking Ferrari and Volkswagen Golf are fierce competitors.
A better automotive analogy would be Tour Bus versus Toyota Camry. :)
But in business terms the two can be compared: how much profit will each lend to the bottom line for their parent companies. Both companies have invested heavily in each, and it's apparent that both are betting a substantial part of their future on the success of each. But, since both are in different markets both could succeed or fail independant of the other.
I think Boeing is making the smarter move. It has nothing to do with the airplanes themselves, the technology, or the design. It's all about the market. The trend for airline passengers is direct, regional to regional flights, not hubbing. The 787 is the perfect plane for this, an upgrade to the existing, extremely popular 737. The A380 is built for hubbing, and passengers just don't want to fly to a hub, change planes, fly to another hub, change planes, then fly to their destination.
Hubbing used to be quite popular as airlines focused on cost per passenger seat mile metrics. But airlines like Southwest showed that direct regional airlines not only could find customers, but could make air transportation much cheaper than hubbing strategies. The 737 was their plane of choice, and the plane for the future for this strategy will be the 787.
Hubbing still has its place today, for long haul international type flights. It just isn't economical today to fly from Manchester to Tokoyo direct. So for these flights hubbing will remain popular (I assume through Heathrow?) That's the A380's market. Unfortunately I just don't see this market expanding at the same rate as the regional direct market. Especially as the 787 expands the range at which direct regional becomes cost effective, that will free up lots of airframes that used to hub those routes, and those airframes may take up spots that could be filled by new A380s.
Time will tell...