Gosh, have you guys figured out why there aren't many PCs sold with High Definition DVD drives yet? Well they usually require support for copy protection built into the graphics.
I keep hearing this really ridiculous point "blue ray" is going to win. Actually the drive that's winning is the one that does both HD-DVD and Blu-Ray all in one unit. That's what everyone wants and is waiting for.
I don't see not having an optical drive to be a problem especially with the hard drive and it's ability to download HD programming from the Xbox Live HD content service (similar to itunes)..
Most people buy consoles based on games they want to play.. Not the hardware, that's why in the USA the Nintendo Wii is sold out in most stores around me..
The 360 is a nice unit, and very expandable like the PS3. I think neither is lacking in that ability.
I personally was excited to hear that the new PSP (the PSP200) has high def widescreen video output and supports component out cables. Especially with the number of PSP UMD videos out there (not quite high def but cool)