Is it any suprise? All you have to do is go on XBL and look at what MS offers. They have the one of the largest, and best, digital distribution systems for multimedia at this point in history.
There are very few that are close (NetFlix comes to mind), and even then, no one is trying to be as multi-faceted as MS is.
It's MS's obvious trojan horse. They've brokered deals with IPTV, movie companies, video game companies, and many other things to turn the X360 into a set-top box beast that does litterally everything. And for me, I love every minute of it because it makes my life easier. Their movies are great, and quick to watch (I can have a movie downloaded quicker than walking 100ft to a blockbuster), I can get free game demos (no system on earth is as good as XBL demos), and all the other normal stuff.
I don't know if it's so much that MS wants them to fail, as it'll always have to have some sort of retail distribution system for the games, as the games are the incentive for stores to sell the Xbox 360s (as they make a much higher % profit off of games), and next-gen optical is important, as we'll always need physical drives (atleast until theres 100% broadband penetration in every major market). But it's more of like MS wants them to languish, so once BR comes out on top, digi-distribution is already on it's way to full maturation, with MS and Apple at the forefront (and Apple is partially owned by MS anyways, as MS is the only reason Apple still exists).
Back from the dead, I'm afraid.
