It will boost the number of HD DVD sales..
If someone buys a fancy new device, they're going to buy at least one sample disc/whatever to try it out.
Of course, there are other reasons why it won't work.
The best value HD DVD player in the UK already appears to bundle seven HD DVD titles; if the buyer isn't impressed with those, they won't buy any more.
Unless they get the price well below 100 quid soon, and probably not even then, HD DVD is dead in the water. It's not worth it for the average consumer, and the 'bonus' upscaling capability won't be appreciated by the AV fans, who will buy more expensive and higher performing separates.
Pioneer produce the DV600, which has sold at Scan for a bargain 80 odd quid (instead of 130-150 usually). That does upscaling, HDMI, SACD, SACD over HDMI(!), DVD Audio, DivX, USB, etc.. There's upscaling Sonys at about a hundred quid, the Oppo DV-981HD at 180 quid or so..
When you start spending around 200 quid (The Toshiba HD-EP30), the question of whether to buy a PS3 becomes a reality. The PS3 is a capable Bluray player, plays CDs, also upscales DVDs (not as well as many other cheap players, but enough for many people), plays games as a bonus and looks to be having a bargain TV recording feature in a couple of months.