quote: Won't happen. The blue lasers for Blu-Ray and HD-DVD aren't compatible -- they would need separate transports for each, as well as red lasers for backward compatibility with standard-def DVDs and CDs.
Of course they are two incompatible formats. That's why it would be a "universal" player...becuase it would play both disc *despite* that fact. But they both use blue laser and both use a 5" disc platter so it wouldn't be too hard to design a single transport to read both. DVD-A and SACD are also two incompatible formats and we have universal players for those formats as well...which are also backwards compatible with red-book CD software too.
quote: Correct me if I'm wrong, but aren't digital displays natively progressive anyway? If you showed source material in either progressive or interlaced it would end-up progressive out of the display?
Yes, all video streams are converted to progressive scan for digital displays. However, a natively "1080P" encoded HD disc would offer the advantage of not having been processed/filtered during mastering to minimize aliasing for 1080I displays. Right now all 1080I signals are typically vertically filtered to minimize aliasing for interlaced hardware.