This is a pretty sweet design.
IF they do something like this, they need to make sure to add one thing... wireless network capability and Sony LocationFree TV compatibility. Imagine being able to play videos from not only the device's internal HD, but ALSO from across the Internet, streaming video from a file server or other device in your house?
Using my LocationFree TV, I can already watch cable TV or any of 400 DVDs (stored in a DVD changer), streamed from my house, anywhere I can get a network connection to the TV.