The 360 only has HD-DVD with the add-on USB device, right?
I disagree with the assertion that everything will be online soon, though - the mainstream wants their stuff on DISC... It's "real" to them in a way that a file on a hard drive never will be. This is probably for the best - I personally loathe the way that companies like Microsoft and Sony are trying to convince people that digital files (which can more readily be content-monitored remortely) are somehow "better" than files burned permanently to a disc. I personally want to be able to do ANYTHING and EVERYTHING to content I legally purchase, whether that's make six different MP3 copies of my music CDs (use at home, at work, in my portable MP3 player, in my Chocolate phone and backed up on two different hard drives) or multiple copies of movie DVDs for use in various locations. If Bill gates and Sony had their way, they'd try to charge me a license fee every time I transferred my effing files to a new device and I'm not putting up with that - I'll turn to piracy of my own legally purchased entertainment before I put up with that crap.