^^^ I wasn't addressing other limitations of hardware, just that the DVD drive on the X360 has no implications on the ability of the system to render 1080p. You are assuming consumer devices when posting drive speeds, but PC's easily host much faster DVD drives. Also, even on CD with a 40x CD player, you can queue up data on a HDD and then play it. Again, CD can be used to store/display 1080p.
So, yes I'm right, and it's not my fault you want to watch more than 4 minutes of video or use outdated hardware.