I use Frontrow all the time, and am currently in the process of ripping all my DVDs onto my Macbook (well, an external drive connected to my MB). I actually really like Frontrow and the remote now, after slating it a bit when I first got it. The recent update has made it a lot more stable. I first thought it was gimmicky, but now use it every day.
Anyway, removing Frontrow would hardly make a lot of a difference to the price I'm afraid. The MB is the perfect value for money package as it is.