If they started selling 360 games on Blu-rays, then there would be a huge population of (current)360 owners that wouldn't be able to play them, thus they would cut the potiential market for a Blu-ray released game by however many people that own non Blu-ray playing 360s.
As for selling out the original Xbox owners, I meant that they rushed the 360 to market to get a head start on this generation and they stopped supporting the original Xbox, thus leaving the owners of the original without new games to play. This is different from what Sony did, they still support the PS2 to this day.
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