Rumor: Gates to reveal HD DVD Xbox 360 at CES

Actually, there are more porn studios supporting HD-DVD than Blu-Ray.

HD-DVD has Metro, Wicked Pictures, Hustler, 3rd Degree, Adam & Eve, Zero Tolerance, Platinum Blue and Club Jenna.

Blu-Ray has Teravision.

Neutral studios are Anabolic, Digital Playground, CD Girls, Mantra and Vivid.

But the point is pretty moot. So far, I don't think there have been more than 100 HD titles on both formats combined (around 50 on HD-DVD and a dozen or so on Blu-Ray). And with the average price around $50 each, I doubt many people are buying them.

"1. Shows that Microsoft was wrong all along.
2. Says that Sony was right. (BluRay AND Standard Hard Drive)"

Yes, This one time. But how many times have big companies(Specifically Sony) flipped a stance only a few months later on a major holding point? Hardware Backwards compatibility is crucial, right Sony? At the time, what MS did was the right choice.

"3. Will increase the cost of the new 360 above the 80gb PS3 price point."

Not neccesarily, just because they sell the drives for 170, and a premium 360 is 350, doesn't mean a HD-DVD 360= $520. If anything it would equal $500 at very most, but i could see the elite dropping and a HD-DVD 360 taking it's current price point.

"4. Screw over existing users that have already been screwed over."

Because you were an early adopter for 2 years now? I don't regret a second of owning my 360 since launch.... well, except those 3 weeks it was making it's merry ride to texas. You have a 360, it's a sunk cost. if you think you're getting ripped off now, you must have buyer remorse, because you can always add an HD-DVD drive at a cost, just like anyone buying a new console with HD-DVD built in would have to.

"5. Prove itself (HD-DVD drive) useless when it comes to the development of games and only useful for the playback of HD-DVD's."

Well, considering the current peripheral that costs nearly 2 benjamins and has the same usefullness sells fairly well, i don't think this is much of an issue. They wouldn't replace all 360s with HD-DVD drive versions, so if you want the drive, you pay for it.
This argument is simply complaining because your toaster won't make pizza, even though it wasn't made for it. Get over it, if thats a real issue, you're not the person this is going to sell to.

"6. Take money away from the sale of HD Film content being sold on XBLM."

No. You're just wrong. For starters, nothing is sold on XBLM when it comes to movies, it's only rented.
Unless you already have an elite, with very little on it already, you're not renting HD-DVD movies from XBLM en mass. These fuckers take up 1/4 of the 20 GB HDD everyone else has, and they are a bit over priced as rentals anyways.
This drive also already exists in a different form and doesn't hurt rentals currently. Most people either want digital distribution or physical rentals, they don't teeter back and forth from day to day. If they are able to co-exist right now, having the drive inside the case isn't going to do squat.