I wish people would get over the "it's just for games" because the 360 is not. A significant amount of people watch DVDs, stream content off their PCs, download videos.. it's a multimedia device not just a console!
XBMC shows just how popular this can be as this is what I brought a Xbox 1 for in the first place.
If Microsoft want to be No. 1 they know they need to offer the same things the competition do - that being a Blu-Ray drive to compete with Sony and a Wii-like remote to compete with Nintendo.
The 360 is doing a pretty good job at the moment but it could do better. and they know that!!
So lets see a blu-ray drive. It wont be used for games so please stop bringing that old crap out again. Do you really think they would alienate the millions of customers already? No they wouldn't. It's for 1080p high-bit rate video with HD audio.
If it is going to come out (which like all the other rumours probably not) then I would see it is a very positive thing and it would mean I would not have to buy a PS3 just to watch blu-rays! (my PC has a blu-ray drive but I can't get DTS Master HD Audio or Dolby True HD audio because Windows Vista's protected audio path is code incomplete..).