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@KBG

1. That may increase Blu-ray PLAYER adoption but if everyone is buying the players with the increased sole purpose of streaming movie rentals the media format won't have much success. Especially when you can now get much cheaper devices that do only that for $99 already.

2. I agree that there will be more and more games with increased textures and assets necessitating the need for more space than a single DVD-9...but looking at this objectively is anyone but the hardcore going to care? It may force Microsofts hand at slapping a disclaimer on future games with a 'HDD required' so developers can compress more with mandatory installs.