A 360 with an internal Blu-Ray drive would be fantastic, it could upppen the common strenghts between the PS3 and 360 technically, mulitplatform games could use up more space and devs could assume good constant streaming rates while designing their games.
Also no more disc scratching issues, less noise production (at least while reading Blu-Ray discs), potential Blu-Ray movie compatibility, less drive wearing for the long run, etc. IMO a big win for consumers!
Speculating against this, the Blu-Ray drive would need to be able to spin DVDs fast enough to load legacy 360 games fast enough (Blu-Ray discs read fast due to each disc circulation loads more data due to a higher density of data on disc, fewer RPM needed), there may be some issues with regard to providing such functionality externally through cables for older models and there's as good as no room left on the 360's OS flashdrive (for movie playback, orders of magnitude smaller than the one inside the PS3 whch is still half empty, must use harddrive or something like that).
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