DVDs aren't bad, however, this will allow for less encryption in the games, and thus, less loading times. Even if it is true, I won't get it unless my current 360 dies. *knocks on wood*
I wonder if this will make it any quieter? I know that my 360 is LOUD (Mine's gotten MUCH louder recently, probably a bad sign, but it seems to work for now) when playing a disc, and I also know that the PS3 is silent, even when playing games. That'd definitely be an upside to this rumored hardware change.
Also, Vamp, how would that segment their market? And what are you talking about selling out on the original Xbox?
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