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I won't ditch my 360 elite for a new model. The games will still run on normal dvd's so there is little point i think.

Adding another model for the 360 would increase the number of SKU's to 4 which is abit much and could be confusing for consumers.

An external blue ray drive is probably the most plausible but considering the hd drive addon didn't sell much, i doubt they will add another with no prospects for huge margins of profit.

I think Microsoft is best off pushing for downloadable movie content.

I think this deal you wrote about is for Microsofts next console which would make sense as blue-ray should be used on the xbox 720 without a doubt.