Whilst I can understand not wanting to play up an advantage of your competitor, I don't like the way that Aaron Greenberg had a dig at Sony by saying it could be the next UMD. Microsoft may have no choice but to court the members of the Blu-ray Disc Association for the inclusion of a device in their next console, so they need to be careful about how they downplay the blu-ray advantages now.
I hope that blu-ray does become the de-facto standard for film and game media. The limitations of DVD in terms of storage capacity are becoming obvious in this generation. As a first generation device, the blu-ray in the PS3 doesn't fully exploit the advantages that it has over DVD; it may be able to store much more data but read speeds are only comparable. By the time the next generation of machines come out, blu-ray may well be the only realistic option.