I would say that we don't need Blu-Ray to play quality video games. I've never argued against Blu-Ray as I don't hate the PS3, but it's inclusion by Sony was to win a media format war and for no other reason.
At the rumored $150 it would be the cheapest player out there for anyone with a 360 and I'd buy it in a heartbeat as well. Unfortunately, I think this is probably just a rumor.