good idea
simply for the space savings. I love hearing from folks who bought into the Sony business model, seeming to think that someone would be buying a Wii for the DVD playback. Pull yer heads out. Even if I were to strap on a 360 or other device, I'd love to be able to lose another box under the TV. I could free up another AV input. I'd need one less remote.
It's not about adding useless features to try to sell an overpriced product (lookin at you, Sony PS3 blu ray and Apple iPhone!), it's about including more features and usefulness into something we already bought.
And for you "rebranded gamecube" knuckleheads: first, not all of us bought a gamecube in the first place. Second, contrary to popular belief, most of America doesn't have HD television-many even keeping tube sizes around 20 inches. Paying extra for a feature that then causes me to spend more money on adapters to dumb it down to fit what I *do* have is the true retarded move.
If I want "hardcore", I use my 4GB RAM, dual core, 1.5TB game box with the 8800GTS video card. If I want games to play with friends or while sitting in the living room, I use the Wii.
A firmware DVD update allowing me to get rid of the physical DVD player taking up space is a good thing. Just like their firmware update that allows me to use my old cheap USB keyboards while web surfing.