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Prediction:

A lot of Microsoft supporters will come here and praise Digital Distribution, which is ok, except those are the same people that were praising HD-DVD on the format war, so they're not to promote a format, they're to bring down Blu-Ray by any means necessary, like they lose money on the format war or something...

But i agree with you, the Blu-Ray decision was not to bring HD-gaming to another level, they could easily have done that by letting the game companies to work with multiple DVDs and storage space, Blu-Ray was there to bring the push that they need it to beat Toshiba's HD-DVD and become the HD-physical format of choice...