I could see making an 'Xbox 360 Lite' by dropping the DVD drive, keeping a hard drive (they are small and replaceable) and making it a direct download / streaming device. So it would be a smaller box like a roku. Although, I don't know how much cost it would save dropping the DVD drive.
But it loses me on the ARM processor - that would make a whole bunch of compatibility issues for this gen. Now if the '720' runs on ARM I will be surprised, but that will make more since.
I would imagine it would be like a 'Kinect Roku.' A little Xbox Live streaming device - that obeys your commands.







