One neat idea for a universal player would be one intended to be used with an outboard video processor (like the DVDO ultra or such). Something that had good audio characteristics (or even digital multi-channel out) but was designed to send a digital interlaced (480i) signal over dvi/hdmi to your display or processor directly. I am finding I want a processor to hook my cable box and dvd player both into. Why pay for 2 sets of good video processors? This would be a little bit of a niche product but you could probably get by with cheap conversion parts and good connectivity.

Aaron