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I agree with you %100. For Microsoft, streaming seems to be the cheaper way to go for most non-hardcore users. What i mean by this is, unlike you or I and most men. We do care about the quality of movie/shows we are watching and it seems that the trend is spreading like wild fire. People I know who were once against blu-ray or HD content are now would prefer it over the standards. Pretty soon HD will become the standards and streaming can only get you so far because internet provider are getting smarter and will try to bank off this. Internet providers are and will began to put a cap on how much bandwith you are using. Similiar to a wireless plan for cell phones. Streaming HD quality movies probably will take up your entire bandwith. Plus half the nation dont have high speed interenet and there are some who dont have internet at all. Streaming is a nice to have but dont expect to much from it because sooner or later you will be paying through your nose for interenet packages that let you stream unlimited contents.

In honesty, I think Microsoft main reason for thinking about releasing a bluray add-on is because DVD space is limited. Games are becoming more sophiscated and that equal to more information and contents. If MS dont do anything about this limitation, soon they will be releasing games with 8 dvd's (hopefully there next gen console will fix this issue).