360 to Incorporate Blu-ray (when Hell Freezes Over)

#Xbox 360, #Blu-Ray, #Media, #Movies, #Video Games, #Microsoft
 
So, about a month late, I hear from a friend of mine that MS was thinking of installing a BD player in their Xbox 360 gaming console. I found this very interesting, since HD-DVD, last I heard, was being fully supported by Microsoft. So I did some legwork, and found out the story broke about a month ago, and that the story was a completely different one as well.
It seems Peter Moore had previously said this:
Microsoft would consider adding an external Blu-ray drive to the Xbox 360 in the future, should the right market conditions emerge. According to Peter Moore, corporate VP in charge of fun stuff at Microsoft, those conditions would be the emergence of Blu-ray as the clear winner in the next-generation optical disc format battles.

This seems pretty clear that what he was saying was that SHOULD HD-DVD not be the victor in this new-fangled format war, MS would consider BD. Which I'm sure would be at a point where HD-DVD was pretty much non-existent, which also seems to be not anytime soon at all.
Of course everyone the world over took this to mean MS had given up and that the 360 would have BD drives in them the following week. So MS issued this:
It is important to understand the context in which that statement was made. Microsoft firmly stands behind the HD-DVD format as the best choice for our consumers. As we've said before, we're confident that HD-DVD will bring the excitement of high definition movies to the consumer faster and at a greater value. We believe that consumers have signalled [sic] what format they want to enjoy high definition DVD and we're going to follow them down that path.

So, it seems to me that what MS said was pretty much a logical statement with no real bearing on the future, as we don't know where that will lead us. I for one would like to see BD and HD-DVD coexist (or both die off and a very superior format arise), but it seems as though the studios are really pushing for one or the other.
Anyone here have a preferred format? If you could design the next-gen media, what features would you include?
 
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