@Squilliam
I would have said that the more we move the consoles toward becoming media hubs, the bigger the share of people that will use them for optical media instead of using a stand-alone player.
But I'm not following your reasoning. Take the Wii: it does not play DVDs, even though it uses them for game storage.
I doubt that most Wii games are substantially larger than Gamecube ones, yet they moved from their weird miniDVDs to DVDs as optical support, probably because the most common storage medium has lower costs for burning, printing, packaging etc.
What keeps MS from doing the same, or even Sony though that's unlikely? That is, use the cheapest storage medium that offers the necessary size, enable playback of BR videos on-demand? Actually, all media functionalities (audio and video codecs, ripping capabilities, sharing files over network, exporting audio/video to mobile devices, streaming from various sources) could be managed by microtransactions, downloading the needed system software from the manufacturer's online shop.
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