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Angel_DwK said:
Wait...
so ignoring the fact that it has a HD DVD Drive Annnnnd a BluRay Drive
It has both then... it suddenly has no disk drive?
Then after they give it the dead HDDVD drive.. take it away.. replace it with a dvd drive that it doesn't need?
Yep... their going to do that..

Online only?
sure if you want to ignore half of ur previous user base..

Forward compatibility?
that doesn't even make sense..

I believe the OP is saying it's EITHER:
Blu-Ray, HD-DVD,(I wouldn't be surprised if it was either, but if they continue on the media center route then I'd lean towards Blu-Ray)
Download only,(Unlikely at this point in time, people generally prefer physical media and the infrastructure is still a bit lacking)
or DVD with a huge HDD for installs.

Also forward compatibility makes complete sense, just not in the way the OP is explaining it(which is actually backwards compatibility). Forward compatibility would be the option of playing a next-gen game(to extend the OP's example, say Gears of War 4 for X720) on your current-gen system(in this example it'd be on the X360), likely with reduced textures, resolution, framerate, etc.