Yeah I remember watching that match, Wales stood their ground after the Haka. Neither side was willing to turn away first and this created a great atmosphere before the game. Wales and New Zealand share a common bond in that rugby remains their countries respective national sports and therefore they take great pride in it. The haka is a war dance and the All blacks throw down a challenge to the opposition, and therefore it is for other teams should allowed to respond in an appropriate way to show they accept the challenge. Teams in the past have tried to disrespect it by turning their backs, marching forwards or just carry on warming up. More often than not this ended in the opposition being thumped by the all blacks. Wales had mentioned in the week leading up to the match that they would respond to the haka but nobody thought they would. By standing their ground after the haka they showed their were up to the challenge. Some people including some all blacks that day said they found the stand offensive but it was welcomed by most New Zealanders. This is often the easy part though, as you have to back up your bravado. Wales managed to hold the All blacks to 9-9 at half time but the All blacks ran away with it by the end winning 29-9 with a prop (afoa)running 30 metres to score a try.

They were psyching each other out

They just stood their ground. It was a psychological thing to see who'd move first....didn't matter much as I remember...