I think the guy is on the level
If you were ever going to get a DVD player, you already have one. Blu-ray will, in all likelihood be the last physical disk system for movies; netflix and On-Demand systems are in explosive growth. Iwata wants to put a console forward into that market, and can either sell to the market now (expensively) or prepare for the market of 2, 3 or 5 years time, and do it cheaply.
prop. discs make piracy harder (though it'll still happen), and avoid nintendo paying out patent rights to other companies, something which its never been keen on to start with. most families I know, as their kids moved rapidly out of the "lets play jump around games with mum and dad" to "mum and dad suck, imma mope in my room" have used their Wiis less and less as gaming hubs and more and more as netflix boxen, and it seem Iwata is looking forward and preparing for changes to come.
yes, seriously. I dont see any obvious flaws in the logic or the method.