supporting both iHD and the currently-proposed java system at once will be unneeded pain for device makers - making the firmware way more complex
concerns that bluray wont be supported by microsoft are laughable, and even if ms really tries hard to ignore bluray there will be tons of thirdparty players for windows anyway. and i dont even see what intel has to do with the whole thing.
the whole story smells like a kind of blackmailing attempt, but with no actual blackmailing material